RSJ Investment
RSJ Financial Planning
RSJ Investment

Pensions

 

Tax Advantages of a Personal Pension Plans

All your contributions into Pension plans are now made net of tax relief so for £78 that you pay, £100 is invested. Higher rate taxpayers likewise make contributions net of basic rate tax and can then claim additional relief.

The pension fund itself also grows in a tax-free environment and would therefore accumulate faster than a corresponding investment made in a taxable medium. Accordingly, additional pension contributions could be considered to be a tax efficient long-term investment. Bear in mind, however, that it is a long -term investment to be held until retirement and when the pension is received, less any tax-free cash element, the pension itself is taxable.

Contact us either by e-mail or phone 0151 703 1088
mail@rsjinvestments.co.uk