Registered Pension Scheme Limits
Managing pension contributions efficiently starts with understanding the limits set for registered pension schemes. These thresholds are crucial in determining how much you can contribute in a tax-efficient manner and what tax charges may apply if you exceed them.
Below is a breakdown of the Annual Allowance (AA)—the maximum amount you can save into your pension each year while still receiving tax relief. It also outlines the AA charge, which may apply if your total contributions exceed this limit.
Being aware of these allowances can help you optimise your retirement planning and avoid unexpected tax liabilities.
