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Call Richard Cook: 07770 575 122

email: richard@theinvestmentandretirementcoach.co.uk

Last chance to claim higher rate tax relief on pension contributions?

Yes I know I only wrote about this three weeks ago but people are now beginning to panic and wonder whether they have left it too late to take worthwhile action.

If you have the funds available the very minimum you should think about is bringing forward next year’s contributions (or maybe two or three years’) to before budget day – 16th March.

osborneBudget_2172845b

Is this your last chance to claim higher rate tax relief on pension contributions?

Most of the experts expect the maximum tax relief on pension contributions to be reduced to around 25% with immediate effect.

What this means for you is that if you are a higher rate taxpayer, bringing forward next year’s contribution of, for example, £750 per month could save you as much as £1,350.  At today’s low interest rates you would need to have more than £60,000 invested for a whole year to receive that amount of interest.

It shouldn’t be difficult. The easiest way is to make a one off payment to your existing plan and suspend the direct debit for 12 months. Just watch out for fees. It is not a big job for your adviser. If you have a long term relationship it should be part of the service without you having to pay more fees.

The alternative is to use one of the online services such as Hargreaves Lansdown. If you are not confident to do this on your own just give me a ring on 07770 575122 and I can guide you through the process for a nominal fee of one month’s tax saving.

If you are over age 55 there are even bigger savings to be made but you may have already left it too late. Using one of the online services is probably now the only practical way ahead. Just click the image below to take a look at one of my previous blogs on this subject and then give me a ring.

Gate Closing

Could you wipe out your entire higher rate tax liability for 2014/2015?

Yes, I know it refers to 2014/2015 but the principles remain sound.

There really is no time to waste. Post budget this opportunity will probably be gone forever.

Finally please sign up for blog updates below and share this with anyone you think may be interested.

 

IMPORTANT INFORMATION
This document and our on going services are not personal advice. We'll give you all the help and guidance you need to make your investment and retirement decisions, but we can't advise you. If you're not sure whether you need regulated financial advice we can put you in touch with a suitably qualified and experienced regulated adviser. Because we are not regulated by the Financial Conduct Authority you will not have access to the Financial Ombudsman Service in respect of any complaints. If you use one of the "no advice" on line services to handle investment transactions they will be Regulated and you will have access to the Ombudsman and The Financial Compensation Scheme in respect of their services. The value of investments/pension plans can fall or rise depending on market performance. The Retirement Team and The Investment and Retirement Coach are trading names of Capture Success Ltd Reg No 01825075 Tel 07770575122

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