Pension savings under registered pension schemes are subject to favourable tax treatment, thus incentivising individuals to save for their retirement and be less reliant on the state pension system. However, the extent to which pension savings attract tax relief is subject to limits imposed by Her Majesty’s Revenue & Customs (HMRC).
Tax considerations are relevant to a UK registered pension scheme when:
funds are paid into the scheme (in the form of member and employer contributions)
funds/assets, including returns made from investing such funds/assets, are held in the scheme, and
monies are paid out of the scheme (in the form of pension benefits)
The current pensions tax relief system can broadly be described as 'Exempt-Exempt-Taxed', whereby the first two above stages are exempt from tax (subject to limits) and the third stage is taxed.
For an introduction to the current pensions tax relief system, see Practice Note: Tax treatment of pensions—an introduction.
The tax regime applicable to pensions changed significantly on 6 April 2006 when the Finance Act 2004...
To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.
**Trials are provided to all LexisNexis content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisNexis services please email customer service via our online form. Free trials are only available to individuals based in the UK, Ireland and selected UK overseas territories and Caribbean countries. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
The Pensions Regulator (TPR) has published guidance for trustees and scheme managers on artificial intelligence (AI) in pension schemes. It explains...
The Pensions Regulator (TPR) has published a regulatory intervention report under section 89 of the Pensions Act 2004 concerning two defined benefit...
This week's edition of Pensions weekly highlights includes a review of key news stories, as well as dates for your diary and trackers....
In the Autumn Budget 2026, delivered on 28 October 2026, the Chancellor of the Exchequer, John Healey MP, announced: (i) the ‘adjusted triple lock’...
What is the difference between an appeal and a review?What is an appeal?An appeal in insolvency proceedings is no different to an appeal in normal litigation. An appeal will be allowed only if the appeal court is satisfied that the decision of the lower court was 'wrong' or 'unjust because of a
If a rentcharge is shown as being informally exonerated on title information, does this apply to the current registered owner? Or does the informal exoneration only apply to the parties to the document which informally exonerated the rentcharge?This Q&A considers the situation where, at some point
Late payment penalties—inheritance taxWhile interest often accrues on overdue tax, the late payment of certain taxes may also attract a penalty. For information on the interest accruing on overdue tax, see Practice Notes: IHT—payment deadlines on death—Interest on IHT and Interest on late paid
Can shares in a limited company that have not been paid-up at all be cancelled?A limited company having a share capital may not alter that share capital, except in the ways listed in section 617 of the Companies Act 2006 (CA 2006). Shares in a company cannot simply be cancelled without following an
0330 161 1234