Pensions Tax Relief Changes: Tax Planning Special
Published / Last Updated on 07/02/2008
Pensions Tax Relief Changes: Tax Planning Special
Basic rate tax falls in 6 April 2008 to 20% from 22%.
If you pay personal contributions to your pension, the premium paid receives pensions tax relief.
The cut in income tax rates means that the pensions tax relief offered on the premiums paid will fall.
In simple terms, your total pension premiums paid will fall due to the loss of pensions tax relief meaning a potentially smaller pension.
Our view
Review your pension scheme and consider increasing contributions.
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