Additional Voluntary Contributions
(AVCs).
It is now compulsory for companies to offer employees the
opportunity to invest additional contributions into their
occupational scheme where there is one, in order to boost
retirement benefits.
Under existing revenue limits and since A- Day, if you are a
member of an occupational pension scheme you can invest up
to 100% of your total remuneration or up to a £235,000 in
total.
Tax Releifs
& Contribution Limits.
To receive full benefits of tax relief , pension
contributions have to remain within a certain limit.
Currently the limit is the greater of £3,600 and 100% of
salary, subject to the annual allowance (£235,000 in the
2008/2009 tax year). Any additional contribution over the
annual allowance will be subject to a tax charge.
Levels and bases of, and reliefs from taxation are subject
to change.
