Tax relief on pensions for Higher Rate tax payers set to be cut

Pensions

There has been a lot of speculation in the news over the weekend leading up to the Autumn Budget, that the Chancellor Philip Hammond is considering cutting higher-rate pension tax relief in a bid to find extra money for the NHS.

It is believed that the £38 billion paid out every year in the form of pension tax relief could fund the extra NHS spending.

With the focus being aimed at those who can afford to put tens of thousands of pounds into pension schemes each year. It is commonly agreed that around 40% of the £38 billion goes to the top 10% of earners, which includes all those who earn £46,351 a year or more.

The Chancellor has been tasked with finding £20 billion in his November Budget to fund the extra NHS spending pledges made by Prime Minister Theresa May earlier this year. 

If you believe that this change could affect you, it is worth getting in touch with your IFA before November or contact us on 0161 249 5040 if you don’t have one as we work with a number that we can recommend.