pension – Blue Orchid Corporation Ltd http://www.bo-accounting.co.uk Accounting and Taxation Services - London Tue, 11 Aug 2020 10:20:46 +0000 en-GB hourly 1 https://wordpress.org/?v=5.8.1 http://www.bo-accounting.co.uk/wp-content/uploads/2020/08/cropped-blue-orchid-logo-32x32.jpg pension – Blue Orchid Corporation Ltd http://www.bo-accounting.co.uk 32 32 Pension http://www.bo-accounting.co.uk/informations/pension/ Tue, 11 Aug 2020 08:35:03 +0000 http://www.bo-accounting.co.uk/?p=121 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.

If total pension input exceeds the annual allowanceof £50,000 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
£1,800,000
Maximum tax-free lump sum
25%*

*Subject to transitional protection for excess amount.
A charge may apply in respect of contributions where an individual has relevant income of £130,000 or more.
Note – Total pension input is the increase in value of the aggregate of all the individual’s pension savings. The pension input period is usually the year to the anniversary date which falls within the relevant tax year.

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