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Document How does Annual Allowance differ from the 15/16 tax year to other years?

The 15 / 16 statements will be a Combined Pension Input Period split into 2 separate growth periods:
  • Pre-alignment Pension Input Period - 1 April 2015 to 08 July 2015
     
  • Post-alignment Pension Input Period - 9 July 2015 to 5 April 2016
In the first period you will have an Annual Allowance limit of £80,000 as well as the option to carry forward any remaining allowance from the previous 3 tax years.

In the second period you will have an Annual Allowance limit of £0, however you will be able to carry forward up to £40,000 from the first period and any remaining allowance from the previous 3 tax years.

The whole amount will be calculated in the same way as previous years and then the total amount split between the 2 periods.

The only small difference in the calculations for these statements is that we will not be using CPI as an uprate figure in this period, instead the government has agreed that we will use a flat rate of 2.5%, which will work out to be more beneficial.

 
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alignment, pre alignment, post alignment, 15/16 tax year
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