Cheapest way to preserve 2010/11 pension entitlement for tax relief ?

property.advert

Looking at the pension rules as they relate to tax relief, it seems as though I can only utilise tax relief on pension contributions for prior years if I actually had a pension scheme in operation in that year, going back a maximum of 3 years.

I have no current desire to put money into a UK pension scheme but I want to preserve the right to fund this tax year in the future. To do that, I need to open a pension this tax year.

I don't really want regular payments nor a large lump sum. A perfect scheme would be one which opens, has one small payment into it and then just sits there.

Any ideas ?

kidmugsy

I once opened my daughter a Stakeholder pension for £20.

property.advert

Seems as though I could just chuck £20 into this http://www.legalandgeneral.com/pensions-retirement/pensions/stakeholder-pensions-individuals/ and forget about it.

JOHNGT

You don't have to be an active member for the previous years to count. If you have any sort of pension at all at the moment, even if you are deferred/paid-up, it counts.

Are you saying you have absolutely no pensions at all? If so, then go for the L&G stakeholder.