Just when you thought is was safe to save for your retirement , HM Treasury has today revealed its plans to change the restrictions on pension accumulation to lower levels.
The Coalition Government confirmed in June that it wanted to reform pensions tax releif and these new changes will come into force.The HM Treasury website quotes the following points: ‘On the 14th October the Government announced that, from April 2011, the annual allowance (AA) for tax privileged pension saving will be £50,000 and that from April 2012 the lifetime allowance (LTA) will be £1.5million.’
Lifetime allowance
Was Reducing to (April 2012)
£1,800,000 £1,500,000
Annual Allowance
Was Reducing to (April 2011)
£255,000 £50,000
It has been noted that there may be transitional arrangements for those close to or above £1,500,000.
If you have the benefit of a final salary scheme and see a significant jump in your salary you could see yourself facing a tax charge. This may be the same if you want to make a large contribution to a personal pension plan or money purchase pension plan.
Fuller details can be found at www.hm-treasury.gov.uk/press
If you are or are potentailly effected by these arrangements then early planning is recommended to ensure that you are not adverserly affected by these changes.
Speak to Churchouse Financial Planning Limted on 01483 578800
This should not be seen as individual advice and you should speak to your independent financial adviser (IFA) about your individual circumstances and needs.
Keith Churchouse
Chartered Financial Planner
ISO22222 Certified Financial Planner
Churchouse Financial Planning Limited is Authorised and Regulated by the Financial Services Authority.
CHURCHOUSE is a trading name of Churchouse Financial Planning Limited
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