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The tax charge on an Annual allowance charge is incorrectly calculated for a Scottish taxpayer in 2019

Article ID
the-tax-charge-on-an-annual-allowance-charge-is-incorrectly-calculated-for-a-scottish-taxpayer-in-2019
Article Name
The tax charge on an Annual allowance charge is incorrectly calculated for a Scottish taxpayer in 2019
Created Date
29th November 2019
Product
Problem
Due to an issue with the HMRCs calculation (Special 33), the tax charge on an annual allowance charge for Scottish taxpayers may be incorrectly calculated. The HMRC calculation incorrectly taxes the annual allowance charge within a higher rate banding.
Resolution

Workaround
HMRC are informing users to manually add an amount for tax paid within AIL11 to reduce the pension charge to the expected amount.
In IRIS Personal Tax | Reliefs | Pensions and State Benefits | Pension charges | Annual allowance tax paid or payable by your pension scheme.

IRIS will implement a warning in 19.3.2 where users encounter this scenario.

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