Changes to pension Tax relief in the budget
There is once again speculation about further restrictions to tax relief on pensions in the Chancellor’s Autumn Budget. With the Chancellor looking to increase tax revenues without increasing tax rates, a raid on pension savings is an easy target as the cost of pension tax relief is estimated to be in excess of £35 billion a year.
Currently individuals can generally obtain tax relief at their marginal tax rate on up to £40,000 each tax year. Thus, for a higher rate taxpayer, a £10,000 gross pension investment costs only £6,000 after tax relief. Consider increasing your pension savings just in case?
The budget will take place on Wednesday 22nd November and we will keep you updated of the outcomes, follow us on Twitter and check back for a budget summary.
If you have any concerns about these pending changes and want to know how to maximise your pension please get in touch on 0161 249 5040 or email us