2015/16 Pensions

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.

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 £1.25 Million*
Maximum tax-free lump sum 25%*

 

* Subject to transitional protection for excess amount.