HMRC has published draft regulations detailing the information schemes must give members about the use of their Annual Allowance.

What information must be provided?

Schemes will have to provide active members whose pensions savings/accrual (called the Pensions Input Amount (PIA)) exceeds the Annual Allowance in a tax year with a statement of their pensions saving/accrual. Other members (including former members) may request a statement.

Statements must contain details of:

  • The Annual Allowance for the tax year in which the PIA is calculated
  • The member's PIA for each type of arrangement under a scheme during the relevant Pensions Input Period (PIP)—the period over which the member's pensions savings/accrual is measured
  • To facilitate carry forward of unused allowances—the Annual Allowance and PIAs for the three previous tax years

Time limits for providing information

Schemes must provide statements by 6 October following the end of the relevant tax year. For members who have requested statements, these must be provided within three months of the request or, if later, by 6 October following the end of the relevant tax year. Employers also have a duty to provide scheme administrators with the information required to produce statements.

To give schemes time to put procedures in place for providing statements, the deadline for the automatic provision of statements has been put back to 6 October 2013. This relaxation, however, does not apply to requested statements.