Proposed cut in pension tax relief
The Conservatives announced in their election manifesto their intention to reduce the annual pension allowance from £40,000 to £10,000 for those with taxable income exceeding £210,000. The relief available will be reduced by 50p for every £1 of income over £150,000 and is likely to affect 300,000 individuals.
Whilst the proposal is still just a proposal, it may be worth considering paying premiums sooner rather than later and hoping that any legislation introduced by July’s Budget is not retrospective. If enacted, this will create a marginal rate of tax of 67.5% between £150,000 and £210,000, for those who would have otherwise have made contributions of the full £40,000.
For further details and assistance please contact Nigel Landsman, Head of Private Client, on 020 7969 5549 or firstname.lastname@example.org