Pension planning

For most taxpayers the maximum pension contribution is £40,000 each tax year, although this depends on their earnings. This limit covers both contributions by the individual and their employer.

• The unused allowance for a particular tax year may be carried forward for three years and can be added to the relief for the current, but then lapses if unused.
• For higher rate taxpayers the net cost of saving £10,000 in a pension is only £6,000 but this higher rate relief may not last for ever.

Please do not hesitate to contact us to discuss this in more detail or any other aspect of planning for your retirement.

Increased pension contributions