Pension Premiums
2007/08
There is no 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 total pension input exceeds the annual allowance of £225,000 there is a tax charge at 40% on the excess. This limit does not apply in the year that full pension benefits are taken.
| Maximum Age for tax relief |
74 |
| Minimum age for taking benefits |
50 |
| Lifetime allowance charge |
- lump sum paid |
55% |
| |
- monies retained |
25% |
| on cumulative benefits exceeding |
£1,600,000* |
| Maximum tax-free lump sum |
25%* |
| *Subject to transitional protection for excess amount |
|
