The Kingfisher Pension Scheme – Money Purchase Section
This is the fund account where your contributions are paid into each month and then invested.
When paying into your pension, you receive tax relief on any contributions that you make. This is at the highest rate of income tax that you pay, provided that the total gross pension contributions paid into your pension scheme, by you, your employer and anyone else don’t exceed the lower of:
- your annual earnings; and
- the annual allowance.
An Annual Allowance for pension savings applies each year, which is based on a period of 12 months. In other words it is the amount of pension contributions available on pension savings for each tax year. The Annual Allowance for most is currently £40,000 (correct as at 2016/17 tax year). This is the maximum you or someone else, e.g. the Company, can contribute to all your pensions in one year, without incurring a tax charge. It also includes any benefits accrued in a final salary pension
Tax free cash sum
the amount of your “pot” you want to take as a tax free lump sum. Maximum 25%.