Tax relief for most pension contributions are paid net of basic rate tax relief any additional relief sought by entry on the Tax Return is relief at higher rates of tax. This document discusses conditions for tax relief to be claimed, amount of contributions made, income tax relief for contributions made net. It also covers premium for life assurance schemes and implications of employer contributions.

Points discussed within this guidance note:

> Conditions for tax relief to be claimed

This note sets out the tax relief on employer pension contributions which may be available and how to claim tax relief when completing a tax return. This note helps identify whether a scheme member is deemed a relevant UK individual and the annual allowances available.

>> Relevant UK individual

>> Maximum age

>> Annual allowance

> Amount of contributions ― limit ignoring income

This note details the exception to the limit on contributions where anyone (even  those with no income at all)  can contribute up to £3,600 (gross) into a pension scheme - or this sum can be contributed on their  behalf,  for example by a  parent.

> Amount of contributions ― limited by income

> Income tax relief for contributions made net

>> Scottish taxpayers ― income tax relief

>> Interaction with personal allowances

>> Planning point

> Payments made gross

>> Retirement annuity contracts

>> Occupational schemes ― net pay arrangements

> Life insurance premiums

> Employer contributions

>> Planning pointement

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