What are the Tax Rules?
PACE is a registered pension scheme. Under the Tax Rules, being in a registered pension scheme means that:
- You are not charged income tax on the contributions you pay up to the level of the Annual Allowance.
- Investments build up mostly free from tax.
- Lump sums payable on retirement and death are usually tax-free.
In exchange, the Trustees have to agree that:
- Pensions in payment are treated as earned income and taxed under Pay As You Earn (PAYE).
- They will collect contributions and pay out benefits in accordance with the Tax Rules laid down by the Revenue.
All the information contained in this section is subject to tax legislation and may change.
You will be responsible for making any required declarations to the Revenue regarding your pension allowances.
