Rates & Tools

Tax rates

Pensions

Pension contributions
  • Individuals can obtain tax relief on pension premiums paid in any one tax year up to the lesser of their relevant income (that’s earnings from employment or self-employment after deductions, e.g. expenses in employment but before any reliefs, e.g. personal allowances) and the annual allowance (£50,000 for 2011/12, 2012/13 and 2013/14, and £40,000 for 2014/15 onwards). But basic rate tax relief is allowed on premiums of up to £3,600 (that’s £2,880 net of basic rate tax relief) even where the individual has no relevant earnings.
  • Any annual allowance (but not the money purchase annual allowance - see below) unused in a year can be used in any of the following three years.
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