The chancellor will deliver his 2016 Budget speech on 16 March. He is expected to announce the outcome of a further review of pensions tax relief. Whilst there has been no confirmation of what, if anything, will change rumours are circulating that he may be aiming for a single rate of tax relief for pension contributions.
If the changes go ahead, higher and additional rate taxpayers could lose a significant amount of tax relief, whereas basic rate tax payers would gain additional relief.
If you are a higher rate taxpayer and making pension contributions or looking to do so you may want to speak to your pensions advisor, as soon as possible, about the timing of your payments. Higher and additional rate taxpayers may want to consider bringing forward thier contributions. Whereas basic rate taxpayers may wish to discuss delaying contributions to optimise thier tax relief.
For more information, please contact your pensions advisor or Lesley Sutton on 01484 550037 or email firstname.lastname@example.org.