UUÂãÁÄÖ±²¥

STOP PRESS: This guidance note may be affected by the changes to the taxation of pensions made by FA 2024, Sch 9 from 6 April 2024 onwards. The commentary below covers the rules that apply prior to that date. Before continuing your research, see the Abolition of the lifetime allowance guidance note.

A private pension is a generic term which covers any pension scheme other than the state pension. The most common types of private pension are:

1. •

   occupational pension schemes to which the employee and / or employer contribute

2. •

   personal pension schemes, which are either set up by the individual independently or arranged by an employer as a group personal pension scheme

Private pension arrangements fall into two categories: defined contribution and defined benefit, as explained below.

For information on the state pension, see the State pension guidance note. For details of pensions paid by foreign payers, see the Foreign pension income guidance note.