Pension Premiums
There is no limit on the amount that
may be contributed to a registered
pension scheme. The maximum amount
on which an individual can
claim tax relief in any tax year is
the greater of the individual's UK
relevant earnings or £3,600.
If total pension input exceeds
the annual allowance of £235,000
there is a tax charge at 40% on the
excess. This limit does not apply in
the year that full pension benefits
are taken.
| Maximum
age for tax relief |
74 |
| Minimum
age for taking benefits |
50 |
| Lifetime
allowance charge –lump
sum paid |
55% |
| –monies
retained |
25% |
| on
cumulative benefits exceeding |
£1,650,000* |
| Maximum
tax-free lump sum |
25%* |
|
*Subject to transitional
protection for excess amount.
Note - Total pension input
is the increase in value of the aggregate
of all the individual's pension savings.
The pension input period is usually
the year to the anniversary date which
falls within the relevant tax year.
|
