• Tax relief available for personal contributions is the higher of £3,600 (gross) or 100% of relevant earnings.

• Any contributions in excess of £40,000, whether personal or by the employer, may be subject to income tax on the individual.

• The limit may be reduced to £10,000 (reducing to £4,000 from 6 April 2017) once money purchase pensions are accessed.

• Where the £40,000 (previously £50,000 for tax years to 2013/14) limit is not fully used it may be possible to carry the unused amount forward
  for three years.

• The annual allowance is tapered for those with adjusted income over £150,000. For every £2 of income over £150,000 an individual's
  annual allowance will be reduced by £1, down to a minimum of £10,000.

• Employers will obtain tax relief on employer contributions if they are paid and made 'wholly and exclusively' for the purposes of the business.
  The tax relief for large contributions may be spread over several years.



This publication is published for the information of clients. It provides only an overview of the regulations in force at the date of publication and no action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this publication can be accepted by the authors or the firm.