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Self-Employed Persons (Retirement Annuities)

Volume 961: debated on Tuesday 23 January 1979

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asked the Chancellor of the Exchequer if he will seek to amend the rules in respect of self-employed retirement annuities, allowing earnings such as commissions, tips, bonuses etc. to be taken as part of the total in respect of which a percentage can be used to purchase a pension.

, pursuant to his reply [Official Report, 22 January 1979; Vol. 961, c. 26], gave the following answer:I do not think that such an amendment is necessary. The maximum relief allowable in respect of premiums on a retirement annuity contract taken out by a self-employed person, or one in non-pensionable employment, is calculated with an overriding cash limit, by reference to a percentage of his "net relevant earnings", that is, his assessed earnings less certain deductions. Commissions, tips, bonuses, and so on, which are assessed to tax already enter into the calculation.