Retirement Annuity Policy

I have always been Self-Employed, and have just discovered that my Accountant has not been claiming Tax Relief for my RAP ever since the rules changed in 2001 !

Even though they were already acting for me (and I had sent them details of my "Personal Retirement Plan"), when the rules changed they just presumed it was a Personal Pension, so stopped claiming relief against my earnings!  They say I should have noticed when signing off my return - but THEY are the experts!  How am I supposed to understand these kinds of technicalities?  At the very least, surely THEY should have made sure WHICH kind it was when the new rules came in? I therefore believe they have been negligent. (They always put my contributions down on my Self-Assessment Tax Returns, along with the policy, but STOPPED deducting the figure from my tax due from 2001)

I know they can re-claim the tax paid to HMRC for RECENT years, but I feel they should re-imburse me for the Tax I should have saved prior to this.

Opinions on that would be welcome . . . but MAINLY I am trying to find out about HMRC amounts and limits going back to 2000. . . . despite searching I can find no proper information relating to RAPs.

Firstly - what are the LIMITS in percentage of net income that could be contributed to an RAP?  I understand now it is 100%, but when did that change?  Is it true that prior to 2006 it was 25% if aged 46 - 50 and 30% if 51 - 55 ?  And if so, was that the same back in 2000?  And what should have happened if I contributed MORE than the allowed amount?  (by the way, the recent £50,000 limit is irrelevant, we are talking about much lower figures - typically £2 - £3,000 a year !)

Somewhere I have read that "RAPs are unaffected by the restrictions imposed on Personal Pensions introduced in April 2006" - but what Restrictions do and don't apply?!!

Comments
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You will probably find

ACDWebb |
ACDWebb's picture

Many thanks - to clarify . . .

Southerner1959 |

Also known as a Retirement Annuity Contract (RAC) or s226

ChrisA |

Thanks for that Chris . . . .

Southerner1959 |

This should help

ChrisA |

Another Question . . . .

Southerner1959 |

1st July 1988 was RAR / PP change date

DMGbus |
DMGbus's picture

Funnily enough I found that

Southerner1959 |