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PENSION PRODUCTS
GENERAL
Interaction between PP and s226 contributions
Example:
Bob is 40 and has Net Relevant Earnings of £40000.
Maximum PP Contribution is 20% = £8000
Maximum s226 contribution is 17.5% = £7000.
IN this case the maximum s226 contribution would be £7000 and a further £1000 could be paid to a PP. If a PP contribution of £3000 was paid then the maximum s226 contribution would be £5000.
N.B. unused s226 relief cannot be carried forward and paid in a year where a PP contribution is paid.
Further illustrations of this can be found in Appendix 12 of IR76.
Mortgage Products
Legacy
Disclaimer
Pension Products
Contact
Protection Products
Investment Products
General
GENERAL
LEGACY INFORMATION RELEVANT PRIOR TO 6 APRIL 2006
The basic rule where PP and s226 contributions are paid in the same year is that the aggregate contribution cannot be higher than the maximum PP contribution. Additionally, any s226 contribution must be within the s226 limits for the year.Example:
Bob is 40 and has Net Relevant Earnings of £40000.
Maximum PP Contribution is 20% = £8000
Maximum s226 contribution is 17.5% = £7000.
IN this case the maximum s226 contribution would be £7000 and a further £1000 could be paid to a PP. If a PP contribution of £3000 was paid then the maximum s226 contribution would be £5000.
N.B. unused s226 relief cannot be carried forward and paid in a year where a PP contribution is paid.
Further illustrations of this can be found in Appendix 12 of IR76.
