Pension input periods.

WHAT IS A PENSION INPUT PERIOD?

A pension input period is used by Her Majesty's Revenue & Customs (HMRC) to determine which tax year your contributions are treated for tax purposes. 

The annual allowance for a tax year is tested against pension savings made during the pension input period ending in that tax year.

LEGAL & GENERAL PENSION INPUT PERIODS

The scheme pension input period for the following pension plans is 6 April to 5 April and has run from 6 April 2006.

Legal & General Personal Pension Scheme Number 1
Legal & General Self Invested Person Pension
Legal & General Portfolio Plus Self Invested Personal Pension
Legal & General Personal Pension 2000
Legal & General Stakeholder Penion
Legal & General Stakeholder Pension Established in 2008
Legal & General Pensions Savings Plan
Legal & General (UTM) Stakeholder Pension Scheme
Legal & General Group Personal Pension Scheme Number 1
Legal & General Group  Self Invested Personal Pension
Legal & General Group  Portfolio Plus Self Invested Personal Pension
Legal & General Group  Personal Pension 2000
Legal & General Group Stakeholder Pension
Legal & General WorkSave Pension Plan

If you are a member of a Legal & General pension scheme that is not listed above, the scheme PIP will have been set by the scheme trustee, not us - please contact your employer if you require this information.

If you have pension plans with other providers, you could have a different pension input period for each scheme that you are a member of.

WHAT IS THE ANNUAL ALLOWANCE?

The Annual Allowance for the tax year 2011/2012 is £50,000. It takes into account gross contributions paid by you and any contributions paid by your employer or third parties to any registered pension scheme. Contributions received as a result of contracting out of the State Second Pension and transfer payments are not counted for the purpose of the annual allowance test.

If the total contributions to all of your pensions add up to more than the Annual Allowance, you will have to pay a tax charge on the amount paid above the Annual Allowance.

The Annual Allowance will not apply in the tax year in which you die or if you take your benefits on the grounds of serious ill health.

Where the total of the contributions to all of your registered pension schemes exceeds the annual allowance in a given year, unused allowances from up to three previous tax years may be available. The annual allowance for each of the three tax years before the tax year 2011/2012 is assumed to be £50,000 for this purpose.

To be able to do this you must have been a member of a registered pension scheme in the tax year(s) from which you wish to make use of any unused allowance. If you think this may affect you please contact your financial adviser.

CAN I CHOOSE MY OWN PENSION INPUT PERIOD?

Yes, your pension input period may be the date that you tell us. If a pension input period ends earlier than an anniversary of the end of the previous pension input period, the next pension input period must end in the following tax year.

Please notify us if you wish to elect your own pension input period.

I HAVE BEEN USING THE TAX YEAR FOR MY TAX RETURN. WHAT SHOULD I DO?

As the pension input period is based on the tax year, you don't need to do anything.

WHAT IF I HAVE PREVIOUSLY NOMINATED A PENSION INPUT PERIOD?

Your personally selected pension input period will be used.

I HAVE BEEN USING THE ANNIVERSARY OF MY FIRST CONTRIBUTION FOLLOWING 6 APRIL 2006 FOR MY TAX RETURN. WHAT SHOULD I DO?

You'll be liable for any Annual Allowance charge that arises as a result of the change in the pension input period. You'll be able to claim any repayment of any overpayment that may arise as a result of the change. A repayment claim can be made up to six years after the end of the tax year in which the overpayment was made.

More information can be found on HM Revenue & Customs pensions website


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