• An individual is able to contribute an unlimited amount to any number of registered pension schemes, but there are limits on the amount that is eligible for tax relief.

• If an individual is to receive any tax relief on a personal contribution at all, they must be a relevant UK individual.

• Before we define this we need to consider another piece of terminology, namely relevant UK earnings.

• Relevant UK earnings are:

– Employment income, such as salary, wages, bonus, overtime or commission AND

– Income derived from carrying on or the exercise of a trade, profession or vocation (whether as a sole trader or as a partner) AND

– Income arising from patent rights and treated as earned income AND

– General earnings from an overseas Crown employment, which are subject to UK tax

• Relevant UK individuals are:

– Under the age of 75 AND

– Has relevant UK earnings chargeable to income tax for that year OR

– Is resident in the UK at some time during that year OR

– Was resident in the UK both:

– at some time during the five tax years immediately before the year in which the contribution was made. Relief in such circumstances is subject to a maximum of £3,600 per tax year; and

– when they became a member of the pension scheme OR

– They or their spouse have earnings for the tax year from an overseas Crown employment subject to UK tax.