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Budget 2009 - Personal Taxation
Registered Pension Schemes
| Tax Year | Annual allowance1 | Lifetime allowance |
|---|---|---|
| £ | £ | |
| 2008/2009 | 235,000 | 1,650,000 |
| 2009/2010 | 245,000 | 1,750,000 |
Annual allowance
Personal contributions
- Tax relief on the lower of 100% of annual earnings2 or the annual allowance. The tax relief may be restricted for individuals with income
of £150,000 or more making pension contributions from 22 April 2009.
Employer contributions
- Unlimited.
- Contributions in excess of annual allowance charged to tax at 40% on the member.
Lifetime allowance
- Based on value of benefits taken at crystallisation.
- Scheme funds in excess of the lifetime allowance subject to a charge when benefits paid out:
- 55%if excess funds are taken as cash.
- 25%, plus income tax at marginal rates, if taken as income
1 Total of personal and employer contributions.
2 If no earnings, £3,600 a year and for relief at source arrangements only.
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