Budget 2005

Personal Pension Plans (PPP) And Retirement Annuity Plans (RAP)

Earnings cap

Contribution limits

• carry forward unused relief for 6 years for RAP
• no carry forward for PPP
• PPP and RAP premiums may be treated as paid in previous year
• PPPs so treated must be paid by 31 January in later year and election made on or before date of payment

* Different definitions apply for PPP and RAP
† Life cover restricted to a maximum of 10% of pension contributions
‡ Maximum contribution for those without earnings £3,600; for those with earnings it is the greater of £3,600 or percentage rates shown in table above
§ Contributions paid net of basic rate tax regardless of employment status or earnings level
¶ Life cover restricted to a maximum of 5% of net relevant earnings

The figures shown here are subject to ammendment as the Finance Bill passes through Parliament.

This information has been prepared only as a topical guide to tax and personal financial matters. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material contained in this publication.