13 Mar 2016

A question about : Final Salary PIA Limits Confusion.

Looking for some expert guidance here.

What would the limit be on annual contributions to a defined benefit scheme (an average salary scheme) for someone who is also taking a pension from another (currently deferred) defined benefits scheme (a final salary scheme)?

Am I correct in thinking that the Ј10,000 limit would apply in this case? And that the Pension Input Amount (PIA) on the average salary scheme is 16 times the increase in benefits for the scheme year (April - March).

Currently the PIA is comfortably within the current Ј40,000 annual allowance. However, it would be higher than Ј10,000 so would there be tax to pay on the contributions above this amount if an income was taken from the final salary scheme?

Hope this makes sense.

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