Posted by Nick Day on 16 Dec 2011
Pensions Rules Changes
The Annual Allowance for making UK pension contributions remains at £50,000. However, with careful planning relating to “pension input periods” and the three years carry forward of unused Annual Allowances from previous years, it may be possible to receive tax relief in the current tax year on contributions well in excess of £50,000.
With tax relief available at your marginal tax rate of 40% or 50% this would be an attractive proposition so please contact us if you would like to discuss your options.
A Change in Pension Rules
A change in the pension rules means that the Lifetime Allowance (the amount that can be saved tax efficiently in one’s lifetime) is reducing from £1.8 million to £1.5 million on 6 April 2012.
It is possible to make a “fixed protection” election where this is beneficial although financial as well as tax advice is normally required. If you have not previously made an election and would like to discuss the potential benefits of making one, please get in touch with us.
See also…
Pensions – 55% “Death Tax” Abolished
Tax on Lump Sum Payments from Foreign Pensions
Changes to the Taxation of QNUPS
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