Anti forestalling protected pension inputs query

Anti forestalling protected pension inputs query

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I have a situation where a director/shareholder has changed his pension contributions from the company paying into an occupational scheme to personal contributions being made by him into a personal pension due to cash flow problems in the company. This set up was advised by the financial advisor and all happened during 2009/10 and the directors earnings are far in excess of £150,000, he is therefore caught by the anti forestalling rules.
 
The situation is:
 
Occupational pension scheme contributions were made by employer (own company) in 2008/09 of £235,000 for the year paid in monthly installments (and up to annual allowance level in previous years also). No private contributions were made by the director into this scheme.
Employer contributions in 2009/10 were reduced to £54,196 (Oct £12,098, Nov £12,098, Feb £15,000 and Mar £15,000) into the occupational scheme.
 
Personal pension scheme contributions were made starting in June 10 monthly of £8,750 gross for 10 months totaling £87,500.
 
Per the HMRC guidance/manuals the calculation seems to be:
 
Total pension input amount 2009/10 (£54,196 + £87,500)                               
(all amounts made by or in respect of the individual)
 
£141,696
 
Total protected inputs (company contributions from last year)                         
 (regular monthly payments) 
 
£235,000
 
Total adjusted pension inputs                                                                                
£nil
 
Is it correct to add the different schemes together in this way because it is for one individual? Should the protected inputs be matched only against the contributions made of £54,196 by the company or do the total protected inputs apply per individual?
If the working above is not correct can anybody point me to where the guidance explains this? I have found conflicting pieces of guidance and am not sure where this situation would fit in.
 
Confused.

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By ACDWebb
24th Mar 2010 14:47

It would seem that

he has a new PPP commencing June 09 (I presume June 10 was a typo) so post 22/4/09 and contributions to that will be unprotected. - FA2009 Sch 35 para 11

The contributions to the the company scheme are presumably protected (coming within para 8?) but will reduce the Annual Allowance of £20k [para 1(4)] to nil [para 1(5)] meaning that there will be a clawback on all of the PPP contributions made to the new PPP.

 

In which case - OOPS!

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