Pension Premiums

With effect from 6 April 2006 many of the rules relating to pensions have been changed.

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 £215,000 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	£1,500,000*
Maximum tax-free lump sum	25%*

*Subject to transitional protection for excess amount.