Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Additional voluntary contributions definition

What does Additional voluntary contributions mean? Additional voluntary contributions (AVCs) are extra, optional payments a member makes, on top of any required contributions, to increase retirement benefits under an occupational pension scheme. The term is widely used in scheme rules and professional practice rather than being a single defined statutory term. Key features include: - Usually money purchase (defined contribution) savings, held and invested either in an in‑house AVC arrangement or via a free‑standing AVC with an external provider. In some defined benefit schemes, AVCs can buy added pension or be used to help fund the pension commencement lump sum. - UK tax relief is available within HMRC limits,...

AVCs in UK occupational pension schemes: tax relief, annual allowance, 2024 lump sum allowances, recycling rules, and pension‑freedoms access options

Published by a LexisNexis Pensions expert

Practice notes

THIS PRACTICE NOTE APPLIES IN RELATION TO OCCUPATIONAL PENSION SCHEMES

What are additional voluntary contributions?

Additional Voluntary Contributions (AVCs) are contributions that members of occupational pension schemes choose to pay, beyond those required by the scheme rules, which therefore give the member extra benefits on top of the basic benefits of the relevant scheme. The nature of benefits funded by AVCs is determined by the scheme’s rules. They may provide extra defined benefits (often referred to as ‘added years’), but in most instances AVC entitlements build up on a money purchase basis.

Why distinguish them from other contributions?

For several purposes the contributions, and the benefits purchased with them, are treated as a distinct class separate from normal contributions and benefits. In some areas this produces more restrictive treatment than applies to other benefits; in others, more favourable rules apply. Notably, on a winding up of the pension scheme, funds arising from AVCs have been handled differently from other scheme assets. This reflects that not every member has paid them, and that the resulting benefits are often linked only to the additional member contributions...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Web page updated on 21/05/2026

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...