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.

The annual allowance may be reduced where adjusted income exceeds £150,000. A £4,000 limit may apply where money purchase pensions are accessed.

 

Maximum age for tax relief 74
Minimum age for taking benefits 55
Lifetime allowance charge – lump sum paid 55%
Lifetime allowance charge – monies retained 25%
on cumulative benefits exceeding £1,030,000*

*Subject to transitional protection for excess amount.