retirement

Pension Tax Relief Eligibility - Tax Relief on pension contributions for UK Relevant Individuals

To receive tax relief on your own pension contributions you must be a UK Relevant Individual.  This means: You must be under age 75 when you make the payment to a pension and either:

Have UK earnings:

• You must have UK taxable income from employment or self employed trade or patent income in the tax year the payment is made.  You receive tax relief on gross contributions based upon a maximum contribution equivalent to the higher of your yearly income (Your employer may pay in more than this) or £3,600.  In simple terms, you can pay in your yearly salary or £3,600 if a small salary and receive tax relief.

or if no UK earnings in the current year:

• You must have been resident in the UK during the current year (with no earnings) or resident in the last five years (with UK earnings). In these circumstances you can contribute a gross maximum of £3,600 each year and receive tax relief, i.e. you do not have to live here to pay into a pension and receive tax relief.

or Crown employees:

• If you or your spouse has earnings from an overseas Crown employment subject to UK tax
  

Non Relevant UK Individuals

• If you do not meet any of the criteria above, you are still allowed to make contributions to a UK pension fund but you will receive no tax relief.