RPSM04200020 - Member Pages: Taxation: Tax treatment of Contributions: Contributions qualifying for tax relief

Contributions qualifying for tax relief

How much can I contribute to a registered pension scheme of which I am a member?

Any member of a registered pension scheme is entitled to make unlimited contributions to a registered pension scheme during a tax year.

I have made a contribution to a registered pension scheme - can I claim tax relief?

You can claim tax relief on a contribution to a registered pension scheme if:

• you had not reached your 75th birthday when the contribution was made and
• you are a relevant UK individual, and
• the amount of your contributions during the tax year are no more than the higher of £3,600 or 100% of your relevant UK earnings.

Does my contribution have to be in the form of cash to qualify for tax relief?

No, as well as cash contributions you may be able to make a contribution by transferring certain types of shares, known as eligible shares, into your pension scheme. Not all shares qualify as eligible shares. More details about which shares qualify as eligible shares see RPSM05101040.

Do I pay tax on any contributions made by my employer to fund my benefits?

Although an employer contribution to a registered pension scheme is being made to fund a benefit in kind you will not normally have any tax unless your annual allowance is exceeded. The initial level of the annual allowance is £215,000. More details about the annual allowance are set out in RPSM04200070.