Executive Pension Plan (E.P.P.)

An Executive Pension is a pension set up by the Ltd company for the benefit of the Directors/Employees of the company. The pension is set up under a trust and typically the employer will act as the trustee.

With an Executive Pension both employees and employers can make contributions. The ultimate value of your pension plan will depend on the contributions that have been made over the years and the investment return the funds have achieved in your Executive Pension.

Not only does an Executive Pension provide you with a long-term plan for your
retirement, it is also a tax efficient way for you to set aside money for when you
retire as well as being a tax efficient way for your employer to provide you with
employee benefits. In addition to employer contributions you may be able to
contribute up to 40% of you income (depending on your age) into your Executive
Pension and claim tax relief.

The value of pensions and the income they produce can fall as well as rise. You may get back less than you invested.

Tax treatment varies according to individual circumstances and is subject to change.