50 days to go until pension tax perks could be lost
The Spring budget is only 50 days away and it is has been reported that it is highly likely that George Osborne will severely reduce, or scrap all together, the tax relief gained on pension contributions.
Even if he doesn’t scrap them all together, he is likely to reduce the relief available to top earners, who are already about to see the amount they can pay into their pensions contributions reduce significantly from April, resulting in a double blow for these high earners.
But even those who are classed as ‘middle’ earners are also likely to be targeted – 4.5 million people who pay 40% tax on the top part of their income, may see a reduction in tax relief from the current level of 40%.
This will be a huge bonus to the Chancellor adding a possible £35 billion to the Chancellor’s coffers.
If you think you could be affected by these new rules, what should you be doing before the Spring Budget?
- · Discuss the possibility of adding to your contributions now. His plans could be implemented with immediate effect and you don’t want to be left high and dry on March 16th.
- · Are you a higher rate earner still with money to add in before the allowance is vastly reduced from April? Get in touch to see what you can still contribute in this financial year as the likelihood is you’re able to add more than you thought before the new rules come into practice. More information on the new rules can be found here.
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The pensions rules are becoming ever more complicated and we believe it is imperative to seek advice on the best way to manage your pension.
For more information or to arrange a meeting with one of our experts, please call 01273 208813 or email info@iepfinancial.co.uk.
IEP Financial is authorised and regulated by the Financial Conduct Authority (FCA)
