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Maximum annual pension contribution (annual allowance?) for tax relief purposes

What_time_is_it · 2024-04-25 13:20:03

I'm looking to make a one-off contribution to my DC pension pot. I understand that the maximum that tax relief can be claimed on is £60,000 or your annual income (whichever is lower). Is that correct? And how is annual income calculated? Does it include savings interest? Example: Let's say that my salary for the 24/25 tax…

Comments

AlanP_2 Posts: 3,546 Forumite

26 April 2024 at 7:40AM

Hugheskevi has explained it with an example above but just for absolute clarity, as many people get confused about this aspect of pensions, especially when there is a DB involved:

Earnings Limit uses amounts contributed to DB/DC schemes excluding employer contribution.

Annual Allowance uses amounts contributed including employer contribution for DC schemes and the "notional" calculated increase in pension benefits (the PIA) for DB schemes.

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