It’s that time of year again and tax year end is fast approaching. Its always a worrying time for retirement savers given the ever evolving pension landscape. Here are some points you should consider.
As it stands, no changes are to be implemented with regards to the benefits of contributing to your pension. You should therefore still consider contributing this year if you haven’t done so already and you still have time!! By using your annual allowance, and any available carry forward allowance, you will benefit from income tax relief at your highest marginal rate. A very attractive proposition for UK taxpayers and one that should take advantage of, where possible.
Although funds invested within a pension can grow tax free, you are limited on the total amount you can accumulate (Lifetime Allowance). The current Lifetime Allowance (LTA) is set at £1m and funds in excess of this limit will suffer penalty tax charges when you start to take pension benefits. It has been announced that this limit is due to increase from the start of the new tax year to £1.03m.
Stay connected with us and we will keep you updated with all Tax Year changes, when they are announced.