The tax placed on a pension scheme is automatically placed on the basic rate of tax; however depending on your circumstances a personal pension tax relief could be applied. Non-taxpayers, basic rate taxpayers receive, higher rate taxpayers, top rate taxpayers and for children or grand children, all have a different set of rates places upon the pension scheme savings. Getting to understand these rates and the rates of other savings such as tax-efficient savings and transferring income investments could help you to get the most out of your savings plan.
