Question：Which two of the following represent advantages of a registered pension?

　　A. The individual has no tax liability in respect of employer contributions.

　　B. There is tax relief on employees' contributions.

　　C. On retirement, an unlimited tax free lump sum can be taken.

　　D. There is no limit to the value of the fund.

　　E. Employer contributions do not constitute a taxable benefit.

　　The correct answers are: Employer contributions do not constitute a taxable benefit; There is tax relief on employees' contributions.

　　解析：Employer contributions always count towards the annual allowance of tax relievable contributions (£50,000 for 2012/13) and so the individual will be liable to tax on employer contributions if the employer and employee tax relieved contributions exceed the annual allowance.

　　On retirement only up to 25% of the fund can be taken as a tax free lump sum.

　　The fund must not exceed the lifetime allowance (£1,500,000 in 2012/13).

　　These are useful for the discussion parts of questions.