New information requirements for pension scheme trustees outlined

New information requirements for pension

Draft regulations give pension scheme trustees an idea of the extra information requirements they face when the reduced annual allowance is introduced.

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HMRC published Newsletter no 75 on 28 January.  This includes some draft regulations for consultation on trustees’ duties from tax year 2016/17 onwards.  The draft regulations amend the circumstances in which trustees must give information to individuals in connection with the annual allowance.

Trustees are currently required to send a pensions saving statement (showing pension input amounts for the current and previous three tax years) to individuals who have exceeded the £40,000 annual allowance in the scheme.  The deadline for issuing the statement is six months after the end of the tax year in which the pension input period ends.

When the annual allowance is reduced for higher earners from tax year 2016/17 onwards, this information requirement is no longer adequate as individuals may have an annual allowance lower than £40,000.  To cover this, the draft regulations extend the requirement to also send a pensions saving statement to anyone whose ‘pensionable earnings’ exceed £110,000.  Pensionable earnings is defined as “the member’s salary, wages or fee in respect of the employment to which the…scheme relates”.

The requirement to issue a pensions saving statement if the pension input amount exceeds the £40,000 annual allowance remains in place.  There is no change to the deadline for issuing the statement.

There will be a short consultation on the draft regulations.  While they will give clarity to trustees on their responsibilities for providing information, they won’t help individuals affected by the reduced annual allowance with their pension planning as the statements won’t be received until after the end of the tax year.

HMRC Newsletter no 75 can be found here.


For further information please contact :

Simon Mayho

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