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Pension Premiums

• Maximum amount of pension contributions that qualify for tax relief is the greater of £3,600 or the individuals UK relevant earnings.
• Contributions in excess of £235,000 (was £225,000 for 2007/08) give rise to a tax charge of 40% on the excess.
• Employer contribtuions need to be "wholly and exclusively" for the benefit of the trade to obtain tax relief.
• Minimum age for taking benefits is 50.
• Maximum age for tax relief on contributions is 74.
• Lifetime allowance is £1,650,000 (was £1,600,000 for 2007/08).
• There is a tax charge of up to 55% of the excess value of the pension fund used to provide benefits if they exceed the lifetime allowance.
• Maximum tax-free lump sum is 25%.