There is no financial 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 the total pension input exceeds the annual allowance of £50,000 there may be a tax charge on the excess.

Maximum age for tax relief

74

Minimum age for taking benefits

55

Lifetime allowance charge

– lump sum paid

55%

– monies retained

25%

on cumulative benefits exceeding

£1,500,000*

Maximum tax-free lump sum

25%

* Subject to transitional protection for excess amount.