Pensions and ISAs
Pensions
There is no financial limit on the amount that may be contributed to a registered pension scheme. The maximum amount on which an individual can claim tax relief in any tax year is the greater of the individuals UK relevant earnings or £3,600.
If total pension input exceeds the annual allowance of £235,000 there is a tax charge at 40% on the excess. This limit does not apply in the year that full pension benefits are taken.
| Maximum age for tax relief | 74 |
| Maximum age for taking benefits | 50 |
| Lifetime allowance charge | |
| - lump sum paid | 55% |
| - Moneys retained | 25% |
| On cumulative benefits exceeding | £1,650,000 |
| Maximum tax-free lump sum | 25%* |
* subject to transitional protection for excess amount
ISAs
| Overall investment limit | £7,200 |
| Including cash maximum of | £3,600 |

