retirement

Pension Tax Relief 2011

Pension Tax Relief Maximum Contribution £50,000

Annual Allowance 2011 - (Maximum Pension Contribution Per Year)

• From April 2011 the annual allowance will be reduced from £255,000 to £50,000


• Unused annual allowance from up to three previous years can be carried forward

• Final Salary Pension schemes will be valued using a flat factor of 16 - increased from 10 (for example if your projected pension entitlment increases by £1,000 pa due to pay rises and/or another year of service credit then you will have 16 X £1,000 = £16,000 Annual Pension Contribution Allowance used.  This means increases in final salary pension entitlement may trigger tax penalties or restrict how much you can pay into a pension elswhere.
  

• Annual Allowance Penalties: Pension savings above this level will be subject to a 55 per cent tax charge. Individuals paying 50 per cent tax will be able to claim relief at the full marginal rate. Further consultation in November 2010 with regard to flexibility over the payment of charges where allowance limits breached.
  

Pension Lifetime Allowance 2012 - (Maximum Pension Fund in Total For Life)

• From April 2012 the lifetime allowance will be reduced from £1.8 million to £1.5 million

Old 2009 and 2010 Pension Tax Relief Rules - Now Replaced

• Complex Pension Rules For High Earners
  

Contact us - Book Callback - Free Consultation - Newsletter - Money MOT - Discounts