Net Relevant Earnings

Net relevant earnings describes the income used to assess the maximum contribution that can be made to a Personal Pension Plan.

It includes income which is subject to UK tax under the following headings:

• Employed Income, (Tax Schedule E), including profit-related pay and taxable benefits. (Not including proceeds from the buying or selling of shares, the right to buy shares, or 'golden handshakes')
• Income from property which forms part of the income of an office or employment
• Self-Employed Income, (Tax Schedule D), after deduction of expenses purely relating to that business
• Income from Patent Rights which can be treated as Earned Income

Last Updated: February 2008 © Moneyextra.com

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