Pension Premiums

Pension Premiums:

Maximum contributions: the lower of 100% of earnings for personal contributions, or £50,000 (2010/11: £255,000).  Carry forward of unused allowance from previous three years applies from 06.04.11, but only if you have made some contributions in those years, otherwise you lose the entire allowance.

Lifetime allowance: £1,800,000 (2010/11: £1,800,000), to fall to £1,500,000 from 2012

Stakeholder pensions: up to £3,600 (2010/11: £3,600) irrespective of earnings.

Important note:

If your income was greater than £130,000 (or it has been in either of the two previous tax years), and you or your employer made pension contributions in excess of £20,000 in 2010/11 or the two previous years, then you may have an unexpected tax liability.

To find out how Chapman Robinson & Moore can help your business either call 01865 379272, or click here to arrange a free Confidential Business Analysis.