Tax relief is available on personal pension contributions.
There is no 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 individual's UK relevant earnings or £3,600.
Any contributions in excess of £40,000 whether
personal or by the employer may be subject to income tax on the
Where the £40,000 limit is not fully used it may be possible
to carry the unused amount forward for three years.
Employers will obtain tax relief on employer contributions if
they are paid and made 'wholly and exclusively'. Tax
relief for large contributions may be spread over several years.