Pension Premiums

Saving tax on pension contributions.

Notes

1. The contribution limits for personal pensions are calculated as a percentage of net relevant earnings with an earnings cap of £95,400.



2. The contribution limits for retirement annuities are calculated as a percentage of net relevant earnings with no earnings cap.



3. Where both types of policy are held, special rules apply.



4. Premiums on personal pension and stakeholder pension policies are payable net of basic rate tax relief at source. Higher rate relief, where available, is obtained via a claim on the self assessment tax return.



5. Personal pension premium earnings caps for earlier years are:
   
   

   1989/90	£60,000
   1990/91	£64,800
   1991/92	£71,400
   1992/93	£75,000
   1993/94	£75,000
   1994/95	£76,800
   1995/96	£78,600
   1996/97	£82,200
   1997/98	£84,000
   1998/99	£87,600
   1999/00	£90,600
   2000/01	£91,800

   
   
   

6. Additional Voluntary Contributions for members of occupational pension schemes (Free standing AVCs and AVCs) allow members of occupational schemes to provide for greater financial security in retirement. Total contributions to the occupational scheme and any free-standing scheme may be up to 15% of current-year remuneration, subject to the same cap on earnings as at (5) above.