Tax Information Pension Premiums
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- Income Tax
- Corporation Tax
- Value Added Tax
- Vehicle Benefits
- NI Contributions
- Pension premiums
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- Some useful rates
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- Key dates and deadlines
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- Stamp Duties
| Age at 6 April 2003 | % Limit of net relevant earnings | |
|---|---|---|
| Personal Pensions | Retirement Annuities | |
| 35 or under | 17.5 | 17.5 |
| 36-45 | 20 | 17.5 |
| 46-50 | 25 | 17.5 |
| 51-55 | 30 | 20 |
| 56-60 | 35 | 22.5 |
| 61-74 | 40 | 27.5 |
| Subject to maximum earnings | £99,000 | No limit |
Term Assurance
- for personal pensions, up to 10% of total premiums paid.
- for retirement annuities, up to 5% of net relevant earnings, within above limits.
Stakeholder
qualifying individuals can contribute up to £3,600 gross (£2,808 net) in 2003/04.
Notes
-
The contribution limits for personal pensions are calculated as a percentage of net relevant earnings with an earnings cap of £99,000.
-
The contribution limits for retirement annuities are calculated as a percentage of net relevant earnings with no earnings cap.
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Where both types of policy are held, special rules apply.
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Premiums on personal pension and stakeholder pension policies are payable net of basic rate tax relief at source. Higher rate relief, where available, is obtained via a claim on the self assessment tax return.
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Personal pension premium earnings caps for earlier years are:
1989/90 £60,000 1990/91 £64,800 1991/92 £71,400 1992/93 £75,000 1993/94 £75,000 1994/95 £76,800 1995/96 £78,600 1996/97 £82,200 1997/98 £84,000 1998/99 £87,600 1999/00 £90,600 2000/01 £91,800 2001/02 £95,400 2002/03 £97,200 -
Additional Voluntary Contributions for members of occupational pension schemes (Free standing AVCs and AVCs) allow members of occupational schemes to provide for greater financial security in retirement. Total contributions to the occupational scheme and any free-standing scheme may be up to 15% of current-year remuneration, subject to the same cap on earnings as at (4) above.
Did you know?
That the cost of tax relief to the Government each year is approximately £13.7 billion. This represents the highest value relief to the Government as ISA's only cost £825 million in relief.