Pension Payments
There have been considerable changes to the pension contribution rules
over the last couple of years.
In summary, these are as follows:
• Any individual can make payments of £3600 per annum gross
of tax, whether they have an income or not.
• If an employer makes a contribution on behalf of an employee, this
will be tax deductible in that employer's accounts as long as the
payment is made 'wholly and exclusively1 for the purposes of the
trade.
• The maximum any individual can pay in any pension payment period
(which is usually the same as the tax year) is normally £21,5000
and any
contributions over this will be subject to income tax of 40%. There
are
some exceptions to this rule.
• There is no longer a provision which allows excessive personal pension
contributions to be carried back to the prior year. Some special
rules remain in place for retirement annuity contributions.
Edward Appleton: "You can make huge
tax savings which can transform your life, when you know how."
Ralph Ellerton: "Appletons live and
breathe the paperwork so you don't have to!"
