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.