Tax Benefits

Income tax relief at your highest marginal rate is available on personal contributions up to 100% of relevant UK earnings.  Payments are made net of basic rate income tax. Higher rate tax relief is claimed via your tax coding or through your annual income tax return. 

Employer contributions are paid gross and normally get relief from corporation tax.

The annual allowance for tax relief is £50,000.

The underlying investments are tax efficient, with all the underlying capital growth being free of tax.  However, the fund may not reclaim income tax already deducted in respect of dividends from equities.

There will usually be no liability to Inheritance Tax on death before drawing your benefits.

When you decide to take your benefits you will be able to take a lump sum that is currently tax-free and is 25% of the accumulated fund value.  Pension income is subject to income tax through the PAYE system.

Please contact us for further information.