Prudential Corporation: 38 Billion Pounds Tax Relief Pot Available to Personal Pension Customers


LONDON, U.K., Jan. 17, 2002 (PRIMEZONE) -- Prudential (LSE:PRU) is urging people with personal pensions to take advantage of a 38 billion(1) pounds plus tax benefit called 'carry forward' before it disappears on January 31, 2001. In doing so, Prudential calculates a 40-year-old man with a personal pension could receive up to 4,088(2) pounds in unused tax relief.

Consumers with personal pensions may be able to make extra contributions to their funds under the 'carry forward, carry back' system which allows you to put more than your annual limit into your pension by capitalizing on past unused allowances. Carry back allows customers to make contributions in this tax year but have them treated as if they were made last year. Using this alongside carry forward, personal pension customers can capitalize on allowances not used during the past seven tax years.

Gary Hitchens, Director of Personal Pensions at Prudential said: "On average, by our early thirties, we should be putting around 15% of our annual earnings into a pension fund to secure a retirement income of two-thirds of our salary. Carry forward is an excellent tax break, which providing you can afford to make additional contributions to your personal pension plan, should be capitalized on."

Pension contributions receive initial tax relief of 22% and higher rate taxpayers are entitled up to a further 18%. This means that someone paying 780 pounds in to a personal pension would receive an extra 220 pounds from the Government. A higher rate taxpayer would enjoy an additional 180 pounds, offset against their next tax bill.

Customers who want more information on carry forward or carry back can call Prudential on +0800 0725553.

 Notes to Editors:

 (1) As at December 2001, Torquil Clark estimated 38.87 billion pounds
     of tax relief is available under the carry forward of unused 
     relief rules for personal pensions.

 (2) Prudential calculates a 40-year-old man on 1.5 X national
     average earnings, already paying 10% of annual earnings into a
     personal pension, will receive up to 4088 pounds in tax relief. 
     National average earnings is recorded on table 36 of the Labour
     Force Survey Historical Supplement.

"Prudential is a trading name of the Prudential Assurance Company Limited. This name is also used by other companies within the Prudential marketing group, which between them provide life assurance, pensions, savings and investment products. The Prudential Assurance Company Limited is registered in England and Wales. Registered Office at 142 Holborn Bars, London, EC1N 2NH. Registered number 15454. Regulated by the FSA

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