Definitions for "Annual Allowance"
Maximum amount that can be contributed into a registered pension scheme without incurring a tax charge.
The maximum amount that can be paid into a pension.
This is the new limit that will apply from 6 April 2006 to: the annual amount of contributions to registered defined contribution arrangements, and increases in value under registered defined benefit arrangements that can be made by and for an individual and qualify for tax relief. For the 2006/07 tax year, the limit is £215,000. It will increase gradually to £255,000 by 2010/11, and will be reviewed after that.