Controlling savings

Following the changes in pension scheme regulations from 6 April 2006, individuals now have the ability to contribute far more to their pension fund than previously, and qualify for full tax relief. In any tax year an individual can contribute an amount up to 100% of relevant UK earnings into a pension scheme and attract tax relief, subject to an annual allowance. This allowance was set at £215,000 in the 2006/2007 tax year and will increase to £255,000 by 2010/2011 tax year. (This year it is £225,000). Basic rate tax (currently 22%) is reclaimed by the scheme administrator from HM Reve...