Personal finance: Supercharge your pension pot

Supercharge your pension pot. Picture: TSPL

Supercharge your pension pot. Picture: TSPL

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1USE YOUR ALLOWANCE
The amount you can put away into your pension each year with full tax relief has recently been reduced by 20 per cent, from £50,000 to £40,000. However, any personal contributions cannot exceed your annual income. If you run your own limited company it could make sense to draw extra funds to pay into your pension. If this pushes you into the higher or additional-rate tax band you will get more tax relief (up to 45 per cent), whereas companies with taxable profits of less than £300,000 only receive tax relief on pension contributions of 20 per cent.

Use your allowance
The amount you can put away into your pension each year with full tax relief has recently been reduced by 20 per cent, from £50,000 to £40,000.

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