Alert: Higher rate pension tax relief
By: Andrew Morley Date: 29 January 2016
Category: Lovewell Blake Financial Planning,Alert
Major pension providers and the media are reporting possible further changes to pensions in the forthcoming Budget on 16 March 2016.
In the last couple of years we have seen a large number of changes that allow greater flexibility when taking retirement benefits.
There are strong suggestions that in this Budget the Chancellor will abolish, or reduce, the ability for you to reclaim additional relief on personal pension contributions, if you are a higher tax taxpayer. It looks likely the tax relief will either just be available at the current basic rate (20%) or a flat rate may be introduced for everybody, in the region of 30 to 33%.
It has also been suggested that the relief will be cut from midnight on 16 March 2016, to avoid a large inflow of contributions before 5 April 2016.
As always there is no guarantee this will happen, but the general guidance, if you are looking to make lump sum pension contributions, is to make sure the contributions are paid by 16 March 2016.
Due to the administration and clearing process of pension payments we would suggest contributions are made by 10 March 2016 to avoid any potential delays.
If you have any questions or wish to consider making additional pension contributions, Lovewell Blake’s Financial Planning team is offering you a free one-to-one consultation to explore the benefits of retirement planning. To claim your free one-to-one retirement planning consultation with a member of Lovewell Blake's Financial Planning team call 01603 619620.
It always pays to obtain advice with regard to pension contributions, to ensure the payments fall within existing restrictions.