With just a few weeks before the new Chancellor delivers his Autumn Statement, on 23rd November, rumours of threats to higher rate tax relief have resurfaced. Predicting changes is, of course, nothing more than crystal ball gazing but that doesn’t mean we should ignore the threat and do nothing.
I am not a regulated adviser so nothing I say should be treated as personal advice but here is some general guidance.
If you are a higher rate tax payer making regular contributions, and have the cash available, think seriously about bringing forward those contributions (subject to not exceeding the annual contribution allowances).
Provided all the contributions qualify for higher rate tax relief what do you have to lose?
It is inconceivable that tax relief will increase in future and pretty inevitable that reductions are on the way, even if not in this Autumn Statement.
If you are over age 55 you can use the new “pension flexibility” to wipe out your entire higher rate tax liability for the current tax year with some careful planning. Listen to what I had to say about this in a previous video blog below.
Don’t delay. Talk to your adviser today. If you don’t have one or would like some general guidance just text me on 07770575122 with “pension tax relief” in the headline. If your adviser wants to charge you a big fee or says there is not enough time don’t despair I can help you use one of the online services if you give me a ring.
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