Tapering of annul allowance

Calculating adjusted income and threshold income

This image explains how you calculate threshold income and adjusted income.

For threshold income include all earnings and investment income, deduct gross member contributions whether under relief at source or net pay arrangement, add any employment income given up through a salary exchange agreement set up after 8 July 2015 and finally deduct any taxed lump sum death benefit received. For adjusted income include all earnings and investment income, add any employer contributions and finally deduct any taxed lump sum death benefits received. 

This website is intended for financial advisers only and shouldn't be relied upon by any other person. If you are not an adviser please visit royallondon.com.

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.