Budget 2004

Grant Thornton


Personal Taxation

Grant Thornton

Personal Pension Plans (PPP) and Retirement Annuity Plans (RAP)

Earnings cap

 
PPP
RAP
2004/2005
£102,000
no limit
2003/2004
£99,000
no limit

Contribution limits

Age on 6 April
Maximum % of earnings*
PPP†‡§
RAP
35 or less
17.5
17.5
36-45
20
17.5
46-50
25
17.5
51-55
30
20
56-60
35
22.5
61-74
40
22.5
  • carry forward unused relief for 6 years for RAP
  • no carry forward for PPP
  • PPP and RAP premiums may be treated as paid in previous year
  • PPPs so treated must be paid by 31 January in later year and
    election made on or before date of payment

* Different definitions apply for PPP and RAP
Life cover restricted to a maximum of 10% of pension contributions
Maximum contribution for those without earnings £3,600; for those with earnings it is the greater of £3,600 or percentage rates shown in table above
§ Contributions paid net of basic rate tax regardless of employment status or earnings level
Life cover restricted to a maximum of 5% of net relevant earnings

The figures shown here are subject to ammendment as the Finance Bill passes through Parliament.

This information has been prepared only as a topical guide to tax and personal financial matters. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material contained in this publication.

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