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Calculating the special annual allowance charge

Calculating the special annual allowance charge

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I have a client with income of around £200,000, who made a one off pension contribution of £100,000 during the year. I have a certificate showing the net contribution made of £100,000 and gross of £125,000.

When calculating the tax charge on the excess contribution over the special annual allowance, do I base this on the gross or the net contribution? I tried the HMRC helpsheet and even phoned them up but couldn't get an answer!

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By ACDWebb
13th Oct 2010 13:40

Gross

That is what they get relief for in the return

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By lizmoss
13th Oct 2010 15:54

HMRC also say gross

Thanks. I finally got through to someone at HMRC who said the same thing. But interestingly, he said that Parliament were debating changes to the SAA rules tomorrow and I should hold fire on my client's return until after the debate, in case there were any changes that affected him.

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