Item Welcome to the NHS Business Services Authority Knowledge Base, the place to ask us anything you need to know

Document I am thinking of buying Additional Pension by single payment, will this have an effect on my Annual Allowance?

Yes, buying Additional Pension will increase your pension growth in the tax year in which it is purchased.

When calculating the pension input amount your Additional Pension purchased by single payment will be included in the closing value for Annual Allowance purposes.

To calculate the closing value your pension at the end of the pension input period is multiplied by a flat factor of 16. If you were to purchase an Additional Pension of £2,500 by single payment this would result in pension growth of £40,000.

If you are thinking about buying Additional Pension you may need to consider whether you have any unused Annual Allowance from the previous three tax years to carry forward and add to the Annual Allowance in the tax year you are buying Additional Pension by single payment.
 
More information on Annual Allowance can be found on our website.
 
Fields
Description:
additional pension aa, ap aa, annual allowance, additional pension
See also...

Need more help?

If this doesn't answer your question please contact us directly or search again. Search Again

Does this answer your question?