INTELLIGENCE ZONE

ANNUAL ALLOWANCE

The annual allowance will be reviewed and set every five years for the following five years by a Treasury Order. There is no set formula for increases but it cannot decrease.

The annual allowance (AA) sets the upper limit on the tax efficient yearly contribution or on the accrual received in a defined benefits scheme for an individual.

For information on how much your client can contribute and the tax implications please click here.

Tax year AA
2006/2007 £215,000
2007/2008 £225,000
2008/2009 £235,000
2009/2010 £245,000
2010/2011 £255,000


DISCLAIMER

The information on this page is for advisers only and should not be relied upon by individuals.