RPSM05202030 - Member Pages: Contributions and tax relief: Member contributions - relief at source: Total contributions

Total Contributions

[Reg 5 The Registered Pension Schemes (Relief at Source) Regulations 2005, SI 2005/3448]

What is meant by Total Contributions?

‘Total’ contributions refers to the total gross contributions that you make each tax year to all of the registered pension schemes of which you are a member. So in the case of contributions to a relief at source scheme, it means the full contributions; that is, the net contributions plus the amount of tax refunded under relief at source.

Before paying a net contribution for the first time, members have to give to the scheme administrator a declaration that “the ‘total’ contributions to any registered pension scheme in respect of which I am entitled to receive tax relief, will not exceed the higher of the basic amount or my relevant UK earnings.”

By doing this you declare that you will not make a relief at source contribution that is above your tax relief limit of the higher of

• 100% of your relevant UK earnings, or
• the basic amount of £3,600.