Since pension laws were changed in 2006, investors have been able to pay an amount equivalent to 100 per cent of their income into their retirement fund every year, subject to allowances.

But, according to financial advisers, canny investors can exceed this annual allowance in a single year by rearranging their payment structures. All personal contributions entered into self-invested personal pensions, up to £225,000 for the 2007/08 tax year and £235,000 for 2008/09, are paid net of basic rate tax, which is then reclaimed from HMRC by the Sipp administrator and paid into an individual’s pension fund.