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

Document Are there any circumstances in which a member would be exempt from an Annual Allowance charge?

Yes, an Annual Allowance charge for a tax year will not be due in the following circumstances:
  • You are a deferred member for the entire pension input period and your NHS pension benefits do not increase beyond increases in line with the Pensions (Increase) Act 1971.
  • You retire due to severe ill health and meet HMRC’s Severe Ill Health Condition (SIHC) criteria.
  • In the event of your death.
In all of the above circumstances your pension input amount is nil.
 
It is possible that you may have a pension input amount but still not have an Annual Allowance charge. This applies to you if:
  • Growth in you your NHS pension benefits for the tax year is less than the Annual Allowance.
  • Your total pension input amount is more than the Annual Allowance but using carried forward unused Annual Allowance from the previous three tax years reduces the pension input amount over the Annual Allowance to nil.
Fields
Description:
exempt aa, exempt annual allowance
See also...