Annual Allowance and Stakeholder Pensions
Annual Allowance is the overall limit determined by HM Revenue and Customs. The value of this allowed allowance is £245,000 per tax year 2009-2010 which has been raised to £255,000 by the year 2010-2011. If you or your employer is making stakeholder pensions payment up to this specified limit of allowed allowance then it is ok other wise your surplus amount will be subjected to tax charge. Therefore you have to keep this limit in mind while depositing to your stakeholder pension policy account because in case of crossing this limit you have to pay tax which will decrease the total amount you are expecting to get in your stakeholder pension account.
