HMRC Newsletter 47

HMRC has published clarification on the interpretation of "expected pension" when calculating pension input for defined benefit schemes for the purposes of the reduced annual allowance.

The pension input is calculated by deducting the member's pension entitlement at the beginning of the pension input period ("PIP") from the member's entitlement at the end of the PIP (having no regard to any reduction applicable under the scheme rules on the basis of the member's age).