Bolland & Burke Chartered Accountants - a wealth of knowledge at your disposal
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 the Total Pension input exceeds the Annual Allowance of £245,000 there is a tax charge at 40% on the excess. This limit does not apply in the year that the full pension benefits are taken.
| Pension Allowances 2009-10 |
| Maximum Age for Tax Relief | 74 |
| Minimum Age for taking Benefits | 50 |
| Lifetime allowance charge - lump sum paid | 55% 55% |
| Lifetime allowance charge - monies retained | 25% |
| On Cumulative benefits exceeding | £1,750,000 * |
| Maximum tax free lump sum | 25% |
*subject to transactional protection for excess amount
Please Note: The figures in this tax guide are for guidance only. Professional advice should be obtained before acting on the information and no responsibility can be accepted for any loss however caused resulting from actions taken or not-taken as a result of the information on this page.
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