What You Should Know About Tax Relief for Pensions
An overview of the present tax framework for pension plans in the United Kingdom is provided in this practice note. It summarises the major regulations for pension systems registered with HMRC, including those affecting annual allowance, lifetime allowance, and tax relief on contributions or accruals, among other things. Consideration is given to the needs of HMRC in terms of authorized pensions and lump amounts, as well as the tax penalties charged by HMRC on unauthorized payments. A summary of the UK's April 2015 pension flexibility measures is also included in the memo.