Wed-8-Mar-17: Consider Advance Pension Contributions?
Another budget looms, on 8th March. Tax planning would be much easier if we all had the benefit of a crystal ball, but we don’t.
We expect that there will be some announcements in the Budget surrounding Making Tax Digital and the promised review of the R&D regime, but otherwise it’s anyone’s guess what changes the Chancellor will announce. There has been much rumour previously about the possibility of tax relief on pension contributions being restricted. Mr Hammond may leave this alone now that relief is already restricted for those with high levels of income but our advice is that if you are contemplating an additional contribution in this tax year, it would be prudent to make payment before Budget Day, whilst we know that relief is available at higher rates of tax.
The annual allowance for most is £40k, but you may have unused available from earlier years. The current tax regime for pension contributions remains extremely attractive, so contact our private client tax department if you would like to lock into this whilst you still can. You can’t carry forward your unused relief for ever and every approaching Budget creates uncertainty about the ongoing availability of current reliefs.
Blog entry from: Barbara Nicholas.