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Pensions - tax relief on pension contributions
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Tax relief available for personal contributions is the higher of £3,600 (gross) or 100% of
relevant earnings.
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Any contributions in excess of £60,000, whether personal or by the employer, may be subject
to income tax on the individual.
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The limit may be reduced to £10,000 once money purchase pensions are accessed.
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Where the £60,000 limit is not fully used it may be possible to carry the unused amount
forward for three years.
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The annual allowance is tapered for those with adjusted income over £260,000. For every £2
of income over £260,000 an individual's annual allowance will be reduced by £1, down to a
minimum of £10,000.
-
Employers will obtain tax relief on employer contributions if they are paid and made 'wholly
and exclusively' for the purposes of the business. The tax relief for large contributions
may be spread over several years.
-
Pensions - tax relief on pension contributions
-
-
Tax relief available for personal contributions is the higher of £3,600 (gross) or
100% of relevant earnings.
-
Any contributions in excess of £60,000, whether personal or by the employer, may be
subject to income tax on the individual.
-
The limit may be reduced to £10,000 once money purchase pensions are accessed.
-
Where the £60,000 limit is not fully used it may be possible to carry the unused
amount forward for three years.
-
The annual allowance is tapered for those with adjusted income over £260,000. For
every £2 of income over £260,000 an individual's annual allowance will be reduced by
£1, down to a minimum of £10,000.
-
Employers will obtain tax relief on employer contributions if they are paid and made
'wholly and exclusively' for the purposes of the business. The tax relief for large
contributions may be spread over several years.