The tax year end is approaching and calls for a review of personal finances.
Only one change was announced in relation to pensions, and this relates to contribution limits. The current annual contribution allowance is £40,000, but this reduces to £10,000 in cases where the pension holder has begun drawing down income (as opposed to tax-free cash) from a ‘money purchase’ pension. This £10,000 limit is now to be […]
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 […]
From 6 April 2011 tax relief on pension contributions is to be restricted.The relief will be restricted to the basic rate of income tax – currently 20% – for those individuals earning in excess of £180,000. Relief will be tapered between 20% and 40% for those earning between £150k and £180K. Transitional provisions will take […]