Group Personal Pension Plans
A Group Personal Pension Plan is simply a cluster of individual Personal Pension Plans (PPP). The employer will deduct employee pension contributions from net income. The pension provider will then collect contributions, together with the employer's contributions (if applicable) from the company's bank account for investment. Premiums are entitled to tax relief at the investor's highest rate (20% or 40%).
There is no obligation for the employer to contribute to the scheme, however, employer's payments to a pension scheme are eligible for relief against corporation tax. However, where payments exceed the Annual Allowance the excess will be liable to a 40% tax charge. Employer payments are unlimited, but they are included in the Annual Allowance.
For further details please see Personal Pension Plans.