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Taxopedia  ›  P  ›  Pension
P · Glossary

Pension

Retirement savings vehicle — contributions get tax relief at marginal rate.

UK pensions attract tax relief on contributions: 20% basic-rate added at source, higher/additional rate claimed via SA. Annual allowance: £60,000 (2025/26), tapered for very high earners. Tax-free 25% lump sum at age 55+ (rising to 57 from 2028).

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