Pensions

Question 1

what is the lifetime allowance?

Answer 1

• £1,073,100.
• 25% charge on excess put in.
• if withdraw as cash then 55% tax charge
  -maximum pension contributions a person can make it greater of 3,600 or 100% of relevant earning to obtain full relief.

Question 2

what is the restrictions on the annual allowance?

Answer 2

-annual allowance limit is 40k. can bring forward any unused allowance from previous 3 tax years. any amount over 40k will be subject to annual allowance charge.

• if income above 200k and adjusted income above 240k, reduce allowance by £1 for every £2 over. cannot reduce more than 4k.