Anyone know the answers to the following questions related to the incoming pension rules on annual allowance.
1) Why is the CPI up rating factor taken as CPI for 12 months to the september prior to the tax year for which the calculation is to be done ie Sep09-sep10 CPI for 11/12 tax year. Ref
http://www.hmrc.gov.uk/p...ance/pension-input.htm, step4 of savings under a DB scheme.
Can't see why it has to be so far out of alignment?
2) In all of HMRCs examples there doesn't appear to be any example which deals with how added years being purchased over an extended period of time are handled eg 4 years purchased by making additional payments over say 20years until NRD. Is it just a case of adding a 4/20th of a year for each extra year worked since the payments were started or do they get added at the end or have some other algortim involving magic numbers picked out of the air
[Please don't suggest ringing HMRC - I'm already suffering repeative strain injury from all the redialling]
3) As I understood things If your earnings were over the salary limit prior to the new changes (labours changes that is) and you were in a defined benefit scheme the effective cap of 20K (or was it 30K) was being ignored provided no material change was made to the DB pension. Assuming that is correct ,does that now mean that a phantom allowance of 30K+30K+30K is available or does the new calculation need to be done to determine the excess using the new (Po-Pi) x16 rules for each of the previous 3 years.
Thank goodness for the Conservatives ....... you can trust them to make things simple
May be the country should forget GCSEs & A levels as the main means of dishing out undergraduate places - If you can understand this wreck of a tax and pension system you deserve a place anywhere you want.