§ Mr. CousinsTo ask the Chancellor of the Exchequer what proposals he has to introduce a common system of tax reliefs for different types of pension plan as part of the stakeholder pension proposals; and if he will set out the age-related contribution limits which apply to the existing tax reliefs for pensions. [70013]
§ Ms HewittA common system of tax reliefs for different types of pension schemes already exists. Where schemes are tax approved, contributions qualify for tax reliefs (within limits), the investment build-up is tax free, and part of the benefits may be paid as a tax free lump sum while pensions are taxable. We propose extending the same system of reliefs to stakeholder pension schemes.
The age related contribution limits that apply to the existing pensions tax reliefs are as follows:
Maximum Percentage of Earnings1 Age Personal Pensions Retirement Annuities 35 or less 17.5 17.5 36–45 20 17.5 46–50 25 17.5 51–55 30 20 56–60 35 22.5 61–74 40 27.5 1In the case of personal pensions, earnings for limits purposes are capped at £87,600