Use your annual pension allowance

Pension contributions are still a tax-efficient way of saving for retirement, with tax relief given at your highest marginal rate of income tax. Tax relief is restricted to the lower of the annual allowance, which is £40,000 for most people, or your net relevant earnings. It may also be possible to take advantage of your unused annual allowance from the three previous tax years.

This is a complex area as pensions are subject to a lifetime cap as well as potential restrictions for higher earners. You can come to us for advice before making any contributions.

As with all of our tax tips and web pages this information is necessarily summarised and of a general nature.  If you would like detailed specific advice please contact us.