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bigduckontax, Accountant
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Background, years old, employed but with previous pensions

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Background, 69 years old, employed but with previous pensions in effect
Question relating to a proposed AVC before 6 April, and Annual Allowance limits that may apply.
Salary 2015/16 = £93k, Pension (mine and employer) contributions total £6732.
I am aware of the new £40k contribution limit, also aware (but don't fully understand) that this reduces to £10k if pension income has been received. I have other older (employment and OAP) pensions in effect, none paying anything other than the regular monthly pension. Do these reduce my scope for a planned AVC from £33k (£40k minus the £6,732) to £3k (10k minus the £6732.)
If so do i have the option to carry forward from last year (when my salary was £25k, with £936 pension contributions) and if so how much
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to assist you with your question. The 10K limit applies as follows [source: The Pensions Advisory Service]: 'If you have taken flexible benefits which include income, such as an ‘Uncrystallised Funds Pension Lump Sum (UFPLS)’ or flexible drawdown with income, and you want to continue paying contributions to a defined contribution pension scheme, you will have a reduced annual allowance of £10,000 towards your defined contribution benefits. The reduced allowance will apply if you have withdrawn more than the 25% tax free pension commencement lump sum (PCLS). The reduced amount is known as the ‘money purchase annual allowance (MPAA) ,and includes both your own contribution and any other contribution paid on your behalf, such as an employer or a third party. You cannot bring forward any unused annual allowances from the previous three tax years, to warrant a higher contribution of £10,000 towards your defined contribution benefits.' If you are merely drawing ordinary pension benefits then the limitation does not apply. However, pension contributions may not exceed 100% of earned income ie excluding pensions or GBP 3.6K whichever is the higher. and you must be under 75 years of age Unused allowances up to three years can be brought forward to offset pension contributions. I do hope that my reply has been of assistance.
Customer: replied 1 year ago.
Am i right in taking from the above that the £40k limit applies in my case and i am therefore allowed to AVC up to that amount, less the c£7k contributions already made?Regards ***** *****
Correct John although you can mop up any unused contribution limits three years back subject to the limitations I set out in my original answer..
Post to clear my question list!
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