Are you still working and making a pension contribution?
The Treasury will announce new pensions tax relief rules on budget day – 16th March 2016. These changes could be a single rate of tax relief or possibly a move to a pension ISA TEE (Tax Exempt Exempt) Basis.
The Treasury may also announce measure to stop a surfeit of pension contributions being paid in the tax year of 2016/17, for a example a reduced lifetime allowance and/or annual allowance – to be effective from budget day.
It’s possible many higher rate tax payers will find their tax relief reduced as a result of these new rules, and so may want to consider paying in additional contributions in the run up to the budget.
Those affected by the reduction in lifetime allowance to £1m and the new tapered allowance effective from 6th April 2016, need to take action now to either pay in more contributions and/or stop contributions by the end of the next tax year.
Should you need to have any figures or calculations prepared, please do not hesitate to get in touch with ourselves.