Changes to pension tax relief in the budget
Post Author:
Angie Harvey
Date Posted:
November 2, 2017
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There is again speculation about further restrictions to tax relief on pensions in the Chancellor’s Autumn Budget, scheduled for 22 November 2017. 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 of personal pension contributions each tax year. Thus, for a higher rate taxpayer, a £10,000 gross pension investment costs only £6,000 after tax relief.
You may therefore wish to consider making a personal pension contribution before the budget. Please contact us if you would like to discuss this.
