Tax advantages

The Plan is registered with HM Revenue and Customs (HMRC). This means that members benefit from important tax advantages:

• Tax relief on contributions to the Plan within the Annual Allowance.
• Favorable tax treatment on investment income.
• The option of taking a tax-free cash sum at retirement.

In return, HMRC has rules about the amounts you can pay into the Plan and the benefits that it can pay out. The Plan must meet certain HMRC restrictions on the maximum contributions and benefits that can be paid. These rules include the Annual Allowance and the Lifetime Allowance. You should also be aware that you may pay tax on any pension you receive.