Home > > 2008/09 Rates and Allowances > Pension premiums
Pension Premiums
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 total pension input exceeds the annual allowance of £235,000 there is a tax charge at 40% on the excess. This limit does not apply in the year that full pension benefits are taken.
| Maximum age for tax relief | 74 | |
| Minimum age for taking benefits | 50 | |
| Lifetime allowance charge | - lump sum paid | 55% |
| - monies retained | 25% | |
| on cumulative benefits exceeding | £1,650,000* | |
| Maximum tax-free lump sum | 25%* | |
| *Subject to transitional protection for excess amount. | ||
2009 and beyond
The annual allowance and lifetime allowances already announced.
| Annual allowance | Lifetime allowance | |
| 2009/10 | £245,000 | £1,750,000 |
| 2010/11 | £255,000 | £1,800,000 |
Notes
Transitional reliefs are available to protect pension rights built up before 6 April 2006 by registering and protecting those rights, including lump sum rights in excess of £375,000. A claim for this transitional relief must be made by 5 April 2009. Certain pre-existing lump sum rights of more than 25% are automatically protected.
2008/09 Rates and Allowances
Main taxes
- Key dates and deadlines
- Income tax
- Corporation tax
- Inheritance tax
- Capital gains tax
- Value added tax
- NI contributions
- Residential property letting taxation
- Main capital allowances
- Business deductions
- Penalties for late returns
- Trusts & settlements
- Non domiciled individuals