The chargeable amount is the term applied for tax years 2015–16 onwards to what was previously described as the excess of a pension input amount over the annual allowance. This is simply a change in terminology.

Two forms of chargeable amount are now defined; ‘default’ and ‘alternative’. The ‘default’ chargeable amount will, as its name suggests, apply in all cases where the alternative does not. It is defined as the excess of:

the total pension input amount for the tax year (see below), over

the individual’s annual allowance for that year

(FA 2004, s. 227ZA(2), (3)).

Want to read more?

This content requires a Croner-i Tax and Accounting subscription.

Existing subscriber? Log in

No subscription?

Contact us to discuss your requirements.