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Pension contributions: What a relief!

Shared from Tax Insider: Pension contributions: What a relief!
By Joe Brough, February 2024

Joe Brough outlines the tax relief available when making pension contributions. 

Making pension contributions is a tax-efficient way of saving for retirement. The planning and timing of pension contributions can also contribute to a tax-efficient remuneration strategy for owner-managed businesses.  

When UK individuals aged under 75 who are members of a relevant pension scheme make personal pension contributions, tax relief is available on their gross contributions in a tax year, up to the higher of their ‘relevant UK earnings’ and £3,600 (£2,880 net).  

‘Relevant UK earnings’ for pension contribution purposes include: 

  • employment income; 

  • income from a trade or profession; and 

  • furnished holiday lettings profits from the UK or EU. 

Importantly, investment

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