Pension Contributions


Maximum annual tax efficient gross contributions to age 75
- individuals    £3,600 or 100% of earnings to £235,000
- employers    £235,000 less employee contributions
Maximum tax-efficient fund on taking benefits in 2008/09: £1.65m (rising to £1.8m in 2010/11).
 
Only current earnings count for the 100% limit. It is no longer possible to use prior year earnings or to carry back contribution to earlier years.
 
Most personal pension contributions are paid net of basic rate tax. Payments will rise from 78% of gross premium to 80% from 6 April 2008.