With the 8 July Summer Budget fast approaching there has been much speculation surrounding tax relief on pension contributions, particularly for higher earners.
During their 2015 election campaign The Conservative party unveiled plans to reduce tax relief on pensions for anyone earning more than £150,000. With only a few weeks left until the 8 July Summer Budget the time left to make contributions under the current rules is running out!
Under current rules tax relief of up to 45% is available on pension contributions and there is an annual contribution allowance of £40,000.
We cannot predict what the Chancellor might announce on 8 July and neither can we predict the timing of any potential changes.
If you are a high-earner with income over £150,000 and interested in making pension contributions here are a few things you may want to consider:
Bring forward any planned or regular monthly contributions before 8 July 2015.
Contribute the maximum you can afford (out of disposable income) into your pension before 8 July 2015.
This article has been written for the general interest of our clients and contacts and is correct at the time of going to print. We recommend that you always seek professional advice and no responsibility for loss occasioned to any person acting or refraining from acting as a result of material in this publication can be accepted.