A contribution to the AVC counts as a pension contribution and you can therefore receive tax relief up to 100% of your taxable earnings. Your employer will deduct your contributions from your salary and apply tax relief automatically
The Annual Allowance is the maximum amount of pension savings you can make across all pensions in any tax year, which benefit from tax relief. Your employer will deduct your contributions from your salary and apply tax relief automatically. If your total pension savings in a year are more than the Annual Allowance, you might have to pay some tax on the amount over the Annual Allowance.
You can read more about the Annual Allowance by visiting the Tax on your private pension page on the GOV.UK website. Details of how your main civil service pension scheme is considered for annual allowance purposes are available on our Annual Allowance page