Stand-out Q – PIP when rights transferred…

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SAT, 24 MAR 2018

Our Technical Hub provides access to a wide range of pension tax and trust technical resources. Every now and then we post tweets covering stand out questions from our technical content and our answers in case others might also find them helpful. As Twitter’s character restrictions only allow for the bare bones of the Q&A we link to the details here, too.

Question:

Did the pension input period (PIP) end when rights were transferred from an arrangement, and does this still have any relevance?

Answer:

The PIP end date remains the same and may be of relevance as the PIP could previously have straddled a tax year end. This is best illustrated with an example.

The PIP for the original SIPP ran from 1 May to 30 April. On 30 September 2014 the member transferred all rights held under that SIPP to a new SIPP. Contributions in the period 1 May 2013 to 30 April 2014 to the original SIPP counted towards the annual allowance for the 2014/15 tax year and contribution from 1 May 2014 up to and including 30 September 2014 into the original SIPP counted towards the annual allowance for the 2015/16 pre-alignment tax year ending on 8 July 2015.

Note that if the first contribution to the new SIPP was made 1 November 2014, the default end date for the first PIP would have been 5 April 2015 and therefore contributions made up to and including that date would have counted towards the annual allowance for 2014/15.

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