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Pension Contributions For Employees Keep Tax Relief

Published / Last Updated on 14/03/2007

HM Revenue & Customs has issued confirmation that employees pension contributions will be classed as a business expense and therefore most of them will qualify for tax relief.

The main reason why pension contributions would not qualify for full tax relief is where an employer contribution is made to a controlling director, or an employee who is a relative or close friend to the proprietor or controlling director.

Our View

The new provisions will mean that employers and their advisers are able to plan pension contributions with more confidence in the future.

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