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 (£40,000) there may be a tax charge on the excess. 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
Minimum age for taking benefits
Lifetime allowance charge
– lump sum paid
– monies retained
on cumulative benefits exceeding
Maximum tax-free lump sum
* Subject to transitional protection for excess amount.