.
2011 / 12
2010 / 11
Lifetime Allowance*
£1,800,000
£1,800,000
Annual Allowance
£50,000
£255,000

* The lifetime allowance will reduce to £1,500,000 from 6 April 2012

Maximum age for tax relief
74

Minimum age for taking benefits
55
Maximum age for taking benefits (subject to transitional protection for excess amount).
75
Lifetime allowance charge - lump sum paid
55%
Lifetime allowance charge - monies retained
25%
on cumulative benefits exceeding
£1,800,000
Maximum tax free lump sum
25%

Tax relief available for personal contributions: higher of £3,600 (gross) or 100% of relevant earnings.

Any contributions in excess of £50,000 (£255,000), whether personal or by the employer, may be subject to income tax on the individual.

Where the £50,000 limit is not fully used it may be possible to carry the unused amount forward for three years.

Employers will obtain tax relief on employer contributions if they are paid and made ‘wholly and exclusively’. Tax relief for large contributions may be spread over several years.