HMRC issues updated guidance on the exclusion list
The instances where the SA tax calculator is still not working continue. HMRC is working to resolve these but the Exclusion list is still being updated. This is to reflect fixes made, new issues resulting from those fixes and updated guidance. The latest has been updated for changes to 87 and 90.
Exclusion 87 for Pension Lump Sum and how an individual’s lump sum state pension payments are taxed relative to the way they make their personal pension payments. The outcome is to allow the extension of the basic/higher rate limits per s10(6) ITA 2007. The result is the SA tax calculator is correctly extending the basic rate band for 2017-18. However, the ‘income’ for the Pension Lump Sum should be determined without reference to the starting rate for savings, the savings nil rate (personal savings allowance), and dividend nil rate (dividend allowance).
Exclusion 90 criteria have been updated to ensure HMRC identify customers affected but do not identify those that are not.