Pensions-taxreliefs

Contributing to a registered pension scheme generally attracts tax relief, which is one of the main incentives for saving towards retirement. Relief is usually given either by the pension provider claiming it on the member's behalf or through payroll deduction before tax is calculated, depending on how the scheme operates, effectively reducing the real cost of saving.

There are, however, limits on how much can be contributed while still benefiting from relief, and these can be affected by earnings, existing pension savings and, for higher earners, tapering rules. Unused allowance from previous years can sometimes be carried forward. Because the figures and rules are reviewed frequently, it is worth checking your position with us before making large contributions.