Pension Premiums   2006/2007 Rates and Allowances

2006/2007 Rates and Allowances

Pension Premiums

With effect from 6 April 2006, many of the rules relating to pensions have been changed.

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 inout exceeds the annual allowance of £215,000, the is a tax charge of 40% on the excess.  This limit does not apply in the year that full pension benefits are taken.