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Latest - 2008 Budget Summary
(PDF file - 358Kb)

2007/08 tax tables
(PDF file - 44Kb)

2006/07 tax tables
(PDF file - 87Kb)

2005/06 tax tables
(PDF file - 184Kb)

Pensions & Tax - your essential guide
(PDF file - 155Kb)

Pensions - the new tax regime
(PDF file - 332Kb)

Advisor's area

Free guides to the changes in Pensions Legislation effective from April 2006

Pensions & Tax - your essential guide (PDF file - 155Kb)
Pensions - the new tax regime (PDF file - 332Kb)

Pensions

The main thing to remember about Pension and Retirement Financial Planning is that it's never too early to start. Pensions can be broadly divided into two categories: final salary schemes and money purchase arrangements.

Final salary

A final salary scheme is an occupational pension scheme provided by an employer. If you are a member of a final salary scheme, your employer is effectively making a promise to pay you a pension at the scheme retirement age. The precise benefits will depend on your particular scheme rules, but the amount of benefit that you receive will depend on the number of years service with the company, with an overriding maximum of two thirds of your final salary.

Money purchase

There are two main types of money purchase schemes:

1) Personal Pension Arrangements
These schemes are taken out by the self employed, by those who are employed and not eligible to join a company scheme and by employers for employees. They operate on a money purchase basis. In addition, transfers taken from occupational pension schemes to personal pension arrangements will operate on a money purchase basis.

2) Occupational Money Purchase
As an alternative to a final salary scheme, an employer may offer a money purchase occupational pension scheme. Under a money purchase scheme, as the name suggests, the employer promises to pay a certain sum into the scheme, which is then invested on your behalf. When you reach your scheme retirement age, your retirement fund must be used to provide a pension for you. Your ultimate pension will depend upon the level of contributions made and the investment return achieved.

Pensions calculator

Are you unsure how much you should be investing in a pension scheme? As a broad guide, we can provide illustrations based on a standard range of "rates of return", and therefore help you gauge how much you ought to be contributing. Simply click here to have a look...