6 key points about pensions tax relief
By International Adviser, 2 Oct 18
How the UK Government is encouraging people to save for their retirement
Annual allowance
Your annual allowance, currently set at £40,000, is the amount you are allowed to contribute to your pension without paying tax.
However, you can top up your allowance for the current tax year (6 April to 5 April) by carrying forward any you didn’t use from the previous three tax years.
You could have a reduced annual allowance, which can taper down to £10,000 if you are a high earner (this generally affects those with income of £150,000 and above).
You may also be restricted to an annual allowance of £4,000 if you have already started drawing pension income. In both cases the rules are complicated, so you may want to seek financial advice.
