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 £50,000 (dropping to £40,000 in 2014/15) there is a tax charge on the excess. This limit does not apply in the year that full pension benefits are taken. Contributions in excess of the allowance are charged to tax at the top slice of income. Contributions also include those made by the employer.
Maximum age for tax relief 74
Minimum age for taking benefits 55
Lifetime allowance charge-lump sum paid 55%
Lifetime allowance charge – monies retained 25%
on cumulative benefits exceeding £1,500,000*
Maximum tax-free lump sum 25%*
*£1,250,000 for 2014/15 onwards.
Individual Savings Accounts
|Annual exempt amount||Overall Limit (£)||Cash Limit (£)|
In 2013/14 up to £5,760 of that allowance can be saved in a cash ISA. The remainder of the £11,520 can be invested in a stocks and shares ISA with either the same or a different provider.
These savings and their related interest are exempt from income tax & capital gains tax.
Anyone aged 16-17 can invest in a cash ISA only up to the cash limit above.
Junior ISA’s are available for those under 18 to invest up to £3,720 (2012/13 – £3,600)