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Pensions Contributions

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 where adjusted income exceeds £150,000.

A £4000 limit may apply where the money purchase pensions are accessed.

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

£1,030,000*

Maximum tax-free lump sum

25%*

* Subject to transitional protection for excess amount.