§ Mr. Jim CunninghamTo ask the Chancellor of the Exchequer what are the annual limits below which no tax is paid on contributions for(a) employers' contributions and (b) employees' contributions to (i) executive pension plans, (ii) personal pension plans and (iii) small self-administered pension schemes. [14667]
§ Mr. JackIn occupational pension schemes, which includes executive pension plans and small self-administered pension schemes, employee members may annually contribute up to 15 per cent. of their salary with tax relief. There is no specific limit on employer contributions, but they should not exceed the amount required to provide the benefits promised by the scheme.
In personal pension plans, employee members may annually pay a percentage of their salary as follows:
Age of member on first day of tax year Maximum percentage of salary payable 35 or less 17.5 36–45 20 46–50 25 51–55 30 56–60 35 61–74 40 These annual limits for personal pension schemes may be increased by unused contributions relief from past tax years. Any employer contributions to personal pensions must, when aggregate with the employee's contribution fall within the above limits.