Pensions have become ever more complex with high earners not only facing pension relief curtailment but also penalties for large contributions (£20,000 or more).

While pension relief has been curtailed for those earning £130,000 or more, those earning less can contribute up to 100% of their salary.  Non-earners can still benefit from tax relief on gross contributions of £3,600 per annum.

Those earning £130,000 or more should seek the latest advice on pension relief and contributions, since the tightening of rules in the Pre-Budget. Now any pension benefit contributed by an employer or third party will be taken into account when calculating whether your income exceeds £150,000.

There are also pension relief restrictions preventing individuals from making large irregular annual pension contributions before 6 April 2011. This affects those earning £130,000 (where an employer’s contributions takes them above the £150,000 income level).

**Stop Press**  the minimum age you can take your pension is rising to 55 on 6 April.

Call Mark Busby on 01344 620495 or email your Enquiry for tax-efficient investment and financial planning advice.