Additional Voluntary Contributions (AVCs)
and Free Standing Additional Voluntary Contributions
(FSAVCs) allow additional contributions
to be made to a pension. AVCs are added
to an existing company scheme, while FSAVCs
are a separate personal pension though there
is no option to take a tax free lump sum.
Contributions to both AVCs and FSAVCs attract
tax relief provided they do not breach the
overall limit for pension contributions
of 15% of salary.
These are likely to be obsolete in 2006
when the new Pensions Act comes into force.