Advice on Pension Limits

Pension limits

Maximum amount you can contribute to pension and receive tax relief is £3,600 a year or 100% of your earnings - whichever is greater.

This is capped at an annual allowance which is currently £50,000.

Anyone can pay these contributions, you, your employer, a relative, etc

The limit applies to your total contributions to all pension arrangements within the DC regime, occupational money purchase schemes which have opted in, personal pensions and the new stakeholder schemes

Contributions are paid after deducting income tax relief at the basic rate - you keep the tax relief even if your income is too low to pay that much tax. In practice, your regular contributions to an occupational money purchase scheme are usually much lower than the maximum allowed.

If you pay in more than the annual allowance, you won't receive tax relief on the excess.

Pensions

Pension limits

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