Changes to Tax Relief for Pensions from April 2016
The government implemented further significant changes to tax relief in pension savings from the beginning of the 2016/17 tax year.
These changes affect a larger number of staff, not only the very highest earners. Staff in Professorial and equivalent Professional Services roles who have significant service in the USS or NHS pension schemes will also need to consider the impact of these changes.
In summary, from April 2016:
- the Annual Allowance (AA) is going to become a tapered amount with a maximum limit of £40,000 reducing to £10,000 depending on the amount of your income.
- the Lifetime Allowance (LTA) is reducing from £1.25 million to £1.0 million.
For more information about the Annual Allowance and Lifetime Allowance and what they may mean for you, please read the detailed briefing document which has prepared for the University by our professional advisers on Changes to Pensions Tax Relief 2016
USS have also provided detailed information on these changes and the options which are available to USS members who may be affected by them:
Please note that if you wish to apply for Enhanced Opt Out from April 2017, you must submit your application to the University Pensions Office in HR Services no later than 28 February 2017.
We recently held a Tax Awareness seminar. If you missed the seminar you can watch a recording of it online.