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I have a doubt regarding the pension limit when it comes to an individual contributing to a registered pension scheme. From what I studied, there is a limit on the relief an individual could get, which is:
Higher of
a) £3,600
b) Relevant earning.Does this limit apply when an individual contributes to an occupational pension scheme? I understand it applies when its deducted at source; however, does it affect the gross pension amount which is deducted from the individual’s income?
The limits apply to both occupational and personal pension schemes.
Allowable payments into occupational schemes are paid gross and are deducted in establishing the assessable employment income to include within taxable income in the income tax computation
Payments into personal pension schemes are made net of basic rate relief being given at source and are NOT deducted in deriving the taxable income of the taxpayer.
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