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)).

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