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Paul McCluskey is right in principle, but if a partner can create £10,000 of pension fund for a net investment of £6,000 completely risk-free (investment £8k, £2k direct cash from HMRC and £2k higher-rate tax relief), where is the incentive to leave profit in the business? That's a pretty good rate of return compared with leaving money in the business...seems a really good idea - until things go pear-shaped, that is.