The annual allowance charge arises where the pension input amounts for each pension input period ending in a tax year exceed the annual allowance for that year.
For tax year 2015–16 onwards, legislation introduced by F(No. 2)A 2015 aligns pension input periods with tax years. New rules apply for pension arrangements that come into existence on or after 9 July 2015, and transitional rules apply to arrangements in existence on that date.
For pension arrangements in existence on 9 July 2015, the following are pension input periods for tax years up to and including 2014–15: