Tax rules for pensions contributions?
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Written on: 14.11.2009 [06:02]
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Lennon
Lennon
Topic creator
Posts: 4
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What are the exact tax rules for pension / pensions contributions? How much is it worth saving? |
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Written on: 17.11.2009 [09:25]
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Cameron
Cameron
Posts: 4
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You are entitled to tax relief on the amount you save for your retirement, as long as it doesn't exceed the tax relief limits. This limit is 100% of your earnings for most, so it's unlikely you'd reach this limit anyway! Tax relief means that for every £78 you save, the government contributes £22. It's actually explained pretty well on this website, take a look: http://www.monetos.co.uk/pensions/planning/tax-incentives/tax-relief/. It's worth saving as much as you can, to get as much tax relief as possible. Of course, if you're planning to invest a large amount of money one year (perhaps from a windfall) you may exceed the tax relief limit for that year and be better off spreading payments out over two or more years. It's all on the site if you can't follow me |
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