Contribution Limits and Earnings Caps for UK Pensions
Prior to April 2006 there were various limits
placed on what you could contribute into your pension. (See
contributions pre 2006)
Since then much simpler,
more flexible rules have been introduced to personal and
company pension schemes.
The new pension contribution rules
You can contribute as much as you
like into several different pension schemes (personal
and/or company) every year.
There is no longer any upper limit to the
total pension pot amount you can build up
Every year you will get tax relief on
your contributions of up to 100 per cent
of your earnings. This is subject to an 'annual allowance'
above which tax will be charged.
This allowance will rise each year until it reaches £255,000
Even if you have hardly any or no earnings at all, you
can still get tax relief; for every £80 you contribute
to a pension in any tax year. Plus the government will also
contribute another £20 into your pension pot - until
the total value of your pension contributions reaches £3,600
for the year.
For the full and latest details go to the UK
Government's advice web site
Pension Basics Contents