As part of the Government’s strategy to restore the UK economy following a period of high spending throughout the coronavirus pandemic, it is said that Rishi Sunak is drawing up plans to cut pensions tax relief for higher earners.
Whilst nothing has been confirmed yet, the proposed change would see the tax relief cut from 45/40% down to 25%, possibly as early as from April 2021 (although this would be reliant on HMRC being able to adapt their IT systems by then). We expect more details to be announced in due course.
If you are a higher or additional rate tax payer and this potential change could affect you, our advice would be to act now and consider maximising your pension contributions for this tax year, including any unutilised capacity for the last 3 years.
Our team are perfectly placed to support you with this. Please get in touch with your usual PM+M representative or email us at firstname.lastname@example.org and we’ll direct you to the best person to help.
This information is correct as of 23 November 2020. This blog is for general guidance only. Recipients should not act upon any of the information provided without seeking specific professional advice tailored to your circumstances, requirements or needs. Please contact PM+M before making any decisions based on any matters relating to this blog.