Tax incentives

As a member of the scheme you benefit from some important tax incentives:

• All but the highest paid members get full tax relief on what they pay into the scheme (within the annual allowance). What you pay therefore costs less than you think.


• You can choose to convert part of your benefits into a tax-free cash amount when you retire. However any pension you take is taxable.


• Generally, inheritance tax is not paid on any cash death benefits.


• If you pay AVCs into an AVC account, your investment returns are free of tax.