Neil Westwood & Co.

 

Chartered Accountants

 

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About This Guide
Income Tax
Capital Gains Tax
Corporation Tax
Main Capital Allowances
Value Added Tax
Inheritance Tax
Vehicle Benefits
Mileage Allowance
National Insurance Contributions
Key Dates And Deadlines
Pension Premiums
Charitable Giving
Savings and Investments
Some Useful Rates
Stamp Taxes
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Pension Premiums

With effect from 6 April 2006 many of the rules relating to pensions have been changed.

There is no limit on the amount that may be contributed to a registered pension scheme. The maximum amount on which an individual can claim tax relief in any tax year is the greater of the individual's UK relevant earnings or £3,600.

If total pension input exceeds the annual allowance of £215,000 there is a tax charge at 40% on the excess. This limit does not apply in the year that full pension benefits are taken.

Maximum age for tax relief74
Minimum age for taking benefits50
Lifetime allowance charge – lump sum paid55%
                                      – monies retained   25%
on cumulative benefits exceeding£1,500,000*
Maximum tax-free lump sum 25%*

*Subject to transitional protection for excess amount.

 

Neil Westwood & Co.

101 Dixons Green Road, Dudley

West Midlands, DY2 7DJ