HMRC are consulting on draft regulations which will make changes to the way pension input amounts are calculated for some defined benefit public service pension schemes.
Specifically, this deals with the situation where an individual has pensionable service in both closed (‘legacy’) and open (‘reformed’) public service schemes, and where the opening value of rights under the old scheme exceeds the closing value of those rights. Under the draft changes, that reduction can then be treated as an excess to be deducted from the pension input amount for the new scheme. The significance here is in relation to the comparison of the individual’s pension input amount with the amount of the annual allowance. The change is expected to have effect from the start of 2023/24. The consultation closes on 26 February 2024.
HMRC are consulting on draft regulations which will make changes to the way pension input amounts are calculated for some defined benefit public service pension schemes.
Specifically, this deals with the situation where an individual has pensionable service in both closed (‘legacy’) and open (‘reformed’) public service schemes, and where the opening value of rights under the old scheme exceeds the closing value of those rights. Under the draft changes, that reduction can then be treated as an excess to be deducted from the pension input amount for the new scheme. The significance here is in relation to the comparison of the individual’s pension input amount with the amount of the annual allowance. The change is expected to have effect from the start of 2023/24. The consultation closes on 26 February 2024.
