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.