CPPIB Cash in Lieu Allowance Guide

Example: Member A

£150,000 Basic Salary + £75,000 Annual Incentive

Pension Pot is Fixed Protected (2016)

LTA Cash in Lieu Allowance

opts for:

On £150,000 Basic Salary

On Qualifying Annual Incentive of £75,000 Single CIL Allowance 10% £7,500

CIL Allowance

10% £15,000

Corporate NI (13.8%) must be paid on a Cash in Lieu allowance

Corporate NI (13.8%) must be paid on a Cash in Lieu allowance

£15,000 ÷ 113.8% = £13,181.02 Annual CIL

£7,500 ÷ 113.8% = £6,590.51

£13,181.02 ÷12 months = £1,098.42 added to monthly pay

‘One off’ £ 6,590.51 Added to Member A’s Pay

Subject to Income Tax and personal NI in the same way as Salary

Subject to Income Tax and personal NI in the same way as Salary

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