Article Index
Budget 2004
Introduction
Income Tax Rates
Personal Allowances
Taxation of Dividends
Personal Reliefs
Benefits in Kind
Tax Free Approved Mileage Rates
Enterprise Investment Scheme (EIS)
Venture Capital Trusts (VCT)
Approved Employee Share Schemes
Individual Savings Accounts (ISA)
Tax Exempt Special Savings Accounts
Personal Pension
Capital Gains Tax
Inheritance Tax
Corporation Tax (Corporate Tax)
Corporate Capital Gains
Corporate Venturing Scheme
Construction Industry Scheme
Capital Allowances and Reliefs
Value Added Tax
National Insurance Contributions (NICs)
Miscellaneous
Gifts to Charities
Landfill Tax
Insurance Premium Tax
Aggregates Levy
Climate Change Levy
Stamp Duty
Income tax and capital gains tax

Page 14 of 31

Budget 2004

Personal Taxation

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

Earnings cap

	PPP	RAP
2004/2005	£102,000	no limit
2003/2004	£99,000	no limit

Contribution limits

Age on 6 April	Maximum % of earnings*
	PPP^†‡§	RAP^¶
35 or less	17.5	17.5
36-45	20	17.5
46-50	25	17.5
51-55	30	20
56-60	35	22.5
61-74	40	22.5

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.

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