- T
- Taking benefits
- A term for the process of accessing your pension savings to receive either lump sums, income or a mixture of both.
- Tapered Annual Allowance
- If you have a high income, the tapered annual allowance reduces the amount you can pay into your pension before a tax charge applies. Your annual allowance is reduced by £1 for every £2 of income you get over the tapered annual allowance threshold, to a minimum of £10,000 per year.
- Tax relief
- Refers to an incentive given by the Government to encourage pension saving. It is essentially a credit by the Government. The first 20% is credited directly to your pension as a top up to your contributions. For higher rate tax payers, relief applicable to the higher rate and additional rate must be claimed by completing a self-assessment tax return.
- Tax year (also known as fiscal year)
- This runs from 6 April to the following 5 April.
- Tax-free lump sum
- Another way of describing the pension commencement lump sum mentioned earlier in this glossary.
- Trust
- A legal agreement for a third party to hold and manage assets for the benefit of a person or group of people. IFGL SIPP and SSAS schemes are all trust based.
- Trust Deed
- A legal document that sets up a trust.
- Trustee
- A person appointed to manage and safeguard the assets of a trust.
Is there jargon we use that you don’t fully understand? Please email us at info@ifglpensions.com and we will add the word to our Jargon Buster.