Important Information regarding the Lifetime and Annual Allowances
Please also refer to the A-Day guide (PDF document) for more information on the Lifetime and Annual Allowances.
Questions related to these new allowances are likely to feature on this year’s self assessment tax returns.
Note to Pensioners:
Please note that if you are already in receipt of a British Steel Pension Scheme pension, the future payment of these benefits will not be affected by either the Lifetime Allowance or Annual Allowance.
You need only consider possible future implications if you have other private pension arrangements which are tax approved and from which you have yet to commence taking benefits.
There are new requirements concerning pensions for those of you who complete an annual tax return. When completing your 2006/07 self assessment tax return, the increase in value of your cumulative pension savings, for the purposes of checking against the Annual Allowance, is calculated over the period from 6 April 2006 to 31 March 2007. Subsequent years run from 1 April to 31 March.
To assist current employees in completing their self-assessment tax return, future Benefit Entitlement Forecasts, which are normally issued in June each year, will provide information on the increase in value of your pension savings during the relevant period attributable to your membership of BSPS, including any in-house Additional Voluntary Contribution (AVC) arrangement(s).
Further information can found in the A-Day guide (PDF document).