|
|
|
Example of the Tax Benefits of Late Contributions to Pension Funds
Paid in £2,808 £ 7,800
Tax relief £ 792 £ 2,200
Total £3,600 £10,000
Tax Free Cash 25% £ 900- £ 2,500
Residual Pension fund £2,700 £ 7,500
Net cost £1,908 £ 5,300
to achieve
a Pension Fund of £2,700 or £ 7,500
Means 41.5% growth from the Inland Revenue.
If you are sitting on cash and have ‘earned income’ the Inland Revenue will allow you to make a pension contribution of £3600 with or with out earnings and up to you entire income or £225,000 which ever is the lower.
If you are a higher tax payer the advantage is even greater!!! An extra 18% tax relief
Make sure you have sufficient emergency funds and have accounted for all planned expenditure prior to making a contribution of this nature.
The Policy Servicing Company Ltd. is an appointed representative of Independent Investment Solutions Ltd, which is authorised and regulated by the Financial Services Authority. FSA Registration No. 224310.
Registered in England and Wales No. 04400834. Registered address: Tritton House, 14 Bath Road, Swindon SN1 4BA
|
|
