Pension Tax Relief Warning

THE CHANCELLOR could be about to cut tax relief for pension contributions.

In his 2010 emergency Budget, Osborne cut the maximum annual pension contribution exempt from tax from £255,000 to £50,000.

This year’s Autumn Statement, scheduled for 5th December 2012, may see the maximum contribution dropped to £40,000, which would save the Treasury about £600m, while a further cut to £30,000 would create savings of £1.8bn.

Source: Accountancy Age magazine, 20th November 2012

Duncan R Glassey
Senior Partner – Wealthflow LLP

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