HM Treasury’s United Kingdom Budget 2005

brought to you courtesy of Grant Thornton


brought to you courtesy of Grant ThorntonPersonal Pension Plans (PPP) And Retirement Annuity Plans (RAP)

Earnings cap

 
PPP
RAP
2005/2006
£105,600
no limit
2004/2005
£102,000
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
27.5
  • 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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