Tax and pensions
Paying in members
To encourage people to pay into a pension there are special
rules on how contributions and some benefits are taxed.
Most people will be able to save as much as they want with full
tax relief as their pension savings will be significantly less than
There is an annual allowance that limits the amount your pension
can increase by each year. This limit is set by Her Majesty's
Revenue and Customs (HMRC) and can change each year. The limit
for 2014/15 is £40,000, although there are special rules for those
higher earners earning in excess of £100,000 per annum.
Please contact your Fund administrator if you believe you might be
impacted by the annual allowance.
There is also a lifetime allowance which limits the amount you
can accumulate free of tax in all your pension arrangements when
you come to take your benefits. The allowance for 2016/17 is £1.00
You can get more information about tax allowances for both the
annual and lifetime allowance from HMRC.
You may still have to pay tax on your income when you start to
take your pension.
We deduct this via Pay As You Earn (PAYE).