This is the total of:

(1)the excess of the ‘defined-benefit input sub-total’ over the ‘alternative annual allowance’ (which is the individual’s annual allowance for the year reduced by £4,000, previously £10,000 for tax years up to and including 2016–17); and

(2)the excess of the ‘money-purchase input sub-total’ over £4,000 (also previously £10,000)

(FA 2004, s. 227B(1), (2)).

Example

Clifford, who has previously flexibly accessed pension rights, has a defined benefit input sub-total for 2018–19 of £20,000 and a money purchase input sub-total of £12,000.

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