RPSM05200020 - Members Pages: Contributions and tax relief: Member contributions - overview: How much can I pay?

Are there any limits on the amount of contributions I can pay and will I receive tax relief on them?

There are no HMRC limits to the amount of contributions you can make to the registered pension schemes you may be a member of, but you should be aware that some schemes may impose their own limits, for example according to the benefits it wishes to provide. However there are limits to the amount of tax relief you can receive on those contributions. In effect if you are resident in the UK you can contribute up to 100% of your relevant UK earnings, or £3,600 if this is higher, in any one tax year and receive tax relief. If your relevant UK earnings are less than £3,600 you can only receive tax relief on contributions of more than 100% of your relevant UK earnings if the contribution is made using the relief at source method - see RPSM05201010.

Example

If your earnings are £10,000 per annum and you wish to contribute £12,000 using some of your savings, then the contributions that will receive tax relief will be restricted to £10,000.

However, any contributions made after you reach age 75 will not qualify for tax relief.

Contributions you make which are used to fund personal term assurance policies (also called non-group life policies) do not qualify for tax relief. But there are some exceptions and some policies are ‘protected policies’. Payment of premiums to protected policies may receive tax relief. See RPSM05101220 for further information