Pensions Tax Relief

Today sees the last day of the Government consultation on pensions tax relief and ideas under consideration include scrapping pension tax relief altogether, potentially from as early as April 2016, with a move to a ‘pensions ISA’ where tax-free access to benefits would be permitted but no tax relief on contributions. This would save the Government around £30bn. Also being mooted is a move to 33% tax relief for all, an improvement for basic rate tax payers but would penalise higher rate tax payers. 

What is clear is that the current system of pensions tax relief is hugely expensive to the taxpayer and mainly benefits a relatively small number of savers, therefore a massive change is very likely to be around the corner. It would therefore be prudent to review your retirement objectives and current funding strategy and seek to take advantage of the current generous tax reliefs whilst they remain available . 

Pensions and planning for later life are complex subjects and everyone’s situation is different, therefore if you would like further information or support please contact Kevin Hilton, a SOLLA accredited adviser on: 01904 464100 or enquiry@garbutt-elliot.co.uk. Or fill out our contact form below: