The government has said it will scrap existing plans to reduce tax relief on pension premiums, but what will replace these and how might it affect you?
The scrapping of the plans for reducing the tax relief that high earners can claim on pension premiums, which were to take effect from next April, is to be welcomed. The plans were a complicated mess. However, what will replace these rules? It looks likely that a restriction will be brought in to the amount that can be paid into an approved pension scheme, with the figure of £30,000 per year, being the pundits best guess at the moment. We expect the results of the government’s consultations on this issue to be announced in October, so we may have a clearer idea shortly.
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