We are only a couple of weeks away from the Autumn Budget, due on the 29 October 2018, and media reports have suggested the lifetime and annual caps on tax-free pension contributions could be reduced.

Pension tax relief is a common topic in pre-budget speculation, although this time the speculation is based on Philip Hammond having recently briefed journalists on the cost of pension tax relief being too high, implying it could provide extra funding needed for the NHS.

Amongst possible options are a further reduction to the annual cap on tax-free contributions, currently £40,000 and reducing the income threshold above which the full relief starts to be withdrawn, currently £150,000.

If you were planning on making a lump sum pension contribution during 2018/19 tax year, then doing so before the 29 October 2018 may be wise.

The Next Step

If you would like further information on the above post or to discuss your own specific circumstances, please give the team a call on 01462 687337 or email info@provisio.co.uk.

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