The Government has announced that the limits for tax relief on pension contributions will be reduced significantly:
- the annual allowance will be reduced from £255,000 to £50,000 (from April 2011); and
- the lifetime allowance will be reduced from £1.8 million to £1.5 million (from April 2012).
These reductions replace the complex changes for higher earners proposed by the previous Government, and mean that tax relief will continue to be given at a individual’s highest of tax (now 50% where income is £150,000 or more), subject to the above limits.
Act Now
Do you have a sizeable pension pot? Do you make substantial annual contributions? Consider whether you want to take advantage of the current, higher tax reliefs and make increased or additional pension contributions before 5 April 2011.
Contact us for further details:
Phone: 020 7354 3914
EmailThe content of this document is intended for general guidance only and, where relevant, represents our understanding of current law and HM Revenue and Customs practice. Action should not be taken without seeking professional advice. No responsibility for loss by any person acting or refraining from action as a result of the material in this document can be accepted and we cannot assume legal liability for any errors or omissions this document may contain. © Cheesmans. March 2011. All rights reserved.
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