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 £225,000 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 |
£1,600,000* |
|
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.
|
