Scheme Pays

Paying tax on pension savings over the Annual Allowance limit

If your pension savings go over the Annual Allowance, you may have to pay a tax charge.

The leaflet below includes more information about: 

• Why you would have to pay a tax charge
• How you can pay the tax charge
• How much tax you will have to pay
• When the ‘Scheme Pays’ option can be used
• How you use the ‘Scheme Pays’ option
• How your benefits would be reduced under the ‘Scheme Pays’ option

If you want to go ahead with Scheme Pays you can download the necessary form below. This will allow you to specify the proportion of your Annual Allowance tax charge that you wish the Group Trustees to pay on your behalf. The form should be returned directly to Railpen via the address stated.