Colin Batchelor finds out what the new tax rules mean for those contributing more than the earnings threshold of £3,600 to their pension
One of the major opportunities in the new DC tax regime is the ability of eligible individuals to contribute up to £3,600 a year to a personal pension regardless of earnings. But what about changes relating to contributions above £3,600 a year. Such contributions are based on the existing personal pension earnings and age-related limits and must be justified by evidence of earnings. The main change is that an individual must now nominate a basis year, and supply the appropriate evidence, for his/her net relevant earnings (NRE). This basis year may be either the current tax year, or any ...
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