You may have read reports in the press over the past week or so that raise alarm bells regarding imminent changes to pension tax relief, which is currently one of the most generous tax breaks available to higher rate taxpayers.
The reports suggest that the Chancellor is considering announcing a single ‘savings incentive’ of between 25% and 33% in the Budget on 16 March, which if rubber-stamped, could adversely affect 5 million higher-rate and top-rate taxpayers to the tune of £8,000 a year – although an individual’s circumstances would dictate the exact amounts involved.
If George Osborne does announce these changes to Parliament next month, they could take immediate effect. There is therefore a short window of opportunity in which to maximise contributions and benefit from the more generous rates currently available.
If you would like to find out more information about the potential implications on your personal finances, or make an appointment to work out the right strategy for 2016 and beyond, please call us 0800 731 7614 or e-mail firstname.lastname@example.org.