Tax and pension benefits

You can, if you wish, pay up to 100% of your taxable earnings in any tax year (or £3,600 if greater) into any number of concurrent pension arrangements of your choice. However, there are limits on the total amount of contributions you can make into all of your various pension arrangements and get tax relief. There are also limits on the pension savings you can build up before they become subject to a tax charge. This is in addition to any tax due under the PAYE system on pension payments. If these limits are exceeded, a tax charge may be due.

There are two main allowances for pension savings – a lifetime allowance and an annual allowance.