Chapter 10 - Pensions Flashcards
Which is a occupational pensions scheme treated as for employee
Exempt benefit
What is an occupational pension scheme treated as for employer
tax-deductible expense
What is the maximum tax relievable contribution that can be made to pension scheme
The higher of:
Earnings
£3,600
What is the annual allowance on Pensions?
£40,000
How do you calculate tapered annual allowance on pensions?
reduce £40,000 by £1 for every £2 by which adjusted income exceeds £240,000 to a minimum tapered allowance of £4,000
How do you treat unused annual allowances?
1) carried forward for up to 3 years
2) Current year allowance is used first, then oldest allowance is brought forward
From what age can people begin to withdraw from a pension scheme?
55
What amount can be withdrawn in a tax-free lump sum?
up to 25% of the pension fund
What is the maximum lump sum?
25% times life time allowance
