Tax Relief on Pensions
What is tax relief
on pensions?
Tax relief is one of the main
reasons for considering a pension over any other sort
of long-term savings plan. The Government give you
tax relief in order to encourage you to invest in
your retirement.
Tax relief works when you invest money
into your pension fund. For each pound that you invest,
the government will give you some extra money, depending
on your income tax rate. For higher rate tax payers
this will be 40p for every 60p invested. For basic
rate tax payers this will be 20p for every 80p invested.
This means that for every £1 invested,
the tax relief will mean that more money actually
goes into your scheme:
If your employer is generous enough to
contribute to your pension, this will add to the effect
of tax relief.
The tax relief under pensions means that
coupled with the generous tax advantages of pension
schemes your money should grow faster on average than
any other form of long-term savings.
Click here
to see our leaflets on pensions.
Click
here to see a leaflet on why you should review your
pension plans.
To find out more
about tax relief under pensions please contact us.
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For
United Kingdom residents over 18 only. © 2003 - 2008 Woodruff Financial
Planning.