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Pensions

 

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. (gross) If total pension input exceeds the annual allowance of £40,000 there may be a tax charge on the excess. From 6 April 2016 the annual allowance may be reduced by £1 for every £2 of adjusted income over £150,000 to a minimum of £10,000.

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

 

£1,000,000*

 

 

Maximum tax-free lump sum

 

25%

 

 

* Subject to transitional protection for excess amount.