Pansion and Changes

Helpsheet 345

Tax year 6 April 2010 to 5 April 2011

Pensions – tax charges on any excess over the Lifetime Allowance, Annual Allowance and Special Annual Allowance, and on unauthorised payments

A Contacts

Please phone: • the number printed on page TR 1 of your tax return • the SA Helpline on 0845 9000 444 • the SA Orderline on 0845 9000 404 for helpsheets or go to www.hmrc.gov.uk

If you had Enhanced Protection throughout 2010–11, the Lifetime Allowance excess tax charge does not apply to you. Do not complete boxes 5, 6 or 7. But if you lost Enhanced Protection during 2010–11, you may be liable for a Lifetime Allowance excess tax charge on benefits first taken on or after that date. For more details about loss of Enhanced Protection, see the Registered Pension Schemes Manual, from page RPSM03104060, at www.hmrc.gov.uk

Lifetime Allowance excess tax charge – boxes 5, 6 and 7

The Lifetime Allowance excess tax charge applies if you: • became entitled to some or all of your benefits from registered pension schemes during 2010–11, or • have reached age 75 in 2010–11 and have not taken any benefits from a pension arrangement you have in a registered pension scheme, or have an unsecured pension fund (income drawdown) which started on or after 6 April 2006, not all of which has, by that time, been used to secure a pension or annuity, or • have received an increase to a scheme pension which your scheme has advised you has used up a part of your Lifetime Allowance, or • have transferred pension rights in a registered pension scheme to a qualifying recognised overseas pension scheme and the value of those benefits (together with the value of earlier benefits, if you have had any) was more than your Lifetime Allowance.

What is my Lifetime Allowance?

Your Lifetime Allowance for 2010–11 will be the standard Lifetime Allowance of £1,800,000, unless you have been told you have a higher Lifetime Allowance. A higher Lifetime Allowance means no Lifetime Allowance...