RPSM02103010 - Technical pages: Registering a
pension scheme with HMRC: why register your pension scheme?
Why register a pension scheme?
A
registered pension scheme qualifies for relief and
exemption from various taxes.
Checklist of tax relief and exemptions for registered pension
schemes
- contributions by members and payments made
on behalf of members (except employer payments) up to the higher of
£3,600 and 100% of earnings are tax-relieved
- increase in pension benefits promised in
defined benefit arrangements within the
annual allowance
- employer contributions
- investment income - free of income
tax
- investment gains - free of capital gains
tax
- lump sum benefits, in specified
circumstances are paid free of income tax
- pension business - such of a company's
life assurance business as is referable to contracts entered into
for the purposes of a registered pension scheme, or is the re-
insurance of such business.
The tax relief in respect of member contributions could be
subject to the annual allowance (see
RPSM06100000). The
lifetime allowance can have a bearing on certain
lump sum payments. See Chapters 9, 10 and 11.
