Currently there are no restrictions on the amounts which can be added to a pension scheme provided that it is registered as such with Revenue and Customs. A tax allowance will be granted in any one tax year on the person's UK relevant earnings and the amount of £3,600, which ever is the greater.
In situations where the total of all contributions made in a tax year is greater than £235,000 (the annual allowance), the individual will be charged at 40% on the amount which exceeds this limit.. The annual allowance limit is waived where the contributions are made in a year where a full pension is received by that individual.
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*Subject to transitional protection for excess amount.
Note - The total contributions made is defined as the sum by which all pensions held by or for the benefit of a particular individual increases in a given tax year. The contributions period is commonly referred to as the year to the anniversary date which comes within the given tax year.
