\n\tAt present, until 5 April 2016, there are opportunities to pay more into your pension fund and still qualify for tax relief. The maximum, for some tax payers, is doubled in 2015-16 from £40,000 to £80,000. This is due to a technical issue that aligns the pension input period with the tax year.<\/p>\n
\n\tIt is also possible to utilise unused allowances from earlier years in 2015-16.<\/p>\n
\n\tFrom 6 April 2016 there are changes for additional rate (45%) tax payers (those with income in excess of £150,000). From this date, a restriction in the annual allowance of £40,000 will apply amounting to £1 for every £2 that adjusted income exceeds £150,000. This downward adjustment will continue until the annual allowance reaches £10,000.<\/p>\n
\n\tAccordingly, if you pay income tax at 45% and your adjusted income exceeds £210,000 your annual allowance for pension relief purposes will be £10,000.<\/p>\n
\n\tMost experts agree that the Treasury is also considering a move to a flat rate system where all taxpayers receive tax relief at the same rate. It is expected that the rate will be set somewhere between 20% and 40%: the higher the rate the less benefit to the Treasury so the eventual change will possibly be closer to 20% than 40%. This will incentivise basic rate taxpayers to save more in their pension schemes and be a disincentive to those paying income tax at the additional 40% rate.<\/p>\n
\n\t <\/p>\n
\n\tThe phrase “make hay while the sun shines” comes to mind.<\/p>\n
\n\t <\/p>\n
\n\tIf you have a private pension scheme you would probably benefit from a discussion with your pensions and tax advisors. The clock is ticking. Any further changes will likely be announced as part of the Budget speech on 16 March…<\/p>\n","protected":false},"excerpt":{"rendered":"
At present, until 5 April 2016, there are opportunities to pay more into your pension fund and still qualify for tax relief. The maximum, for some tax payers, is doubled in 2015-16 from £40,000 to £80,000. This is due to a technical issue that aligns the pension input period with the tax year. It is […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[1],"tags":[],"class_list":["post-2801","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/posts\/2801","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/comments?post=2801"}],"version-history":[{"count":0,"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/posts\/2801\/revisions"}],"wp:attachment":[{"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/media?parent=2801"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/categories?post=2801"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hebblethwaites.com\/index.php\/wp-json\/wp\/v2\/tags?post=2801"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}