For most taxpayers, the maximum pension contribution is £40,000 each tax year, although this depends on their earnings. This limit covers contributions by both the individual and their employer.
Note that the unused allowance for a particular tax year may be carried forward for three years and can be added to the relief for the current year, but then lapses if unused. Hence the unused pension allowance for 2015/16 will lapse on 5 April 2019 if unused.
Under the current rules the net after tax cost of saving £10,000 in a personal pension for a higher rate taxpayer is only £6,000 but there are rumours that this generous relief may be reduced in future.
For further information, speak to a Beavis Morgan adviser who will ask the right questions relating to your individual situation, review your property assets, give practical advice on the best approach towards planning for retirement and mitigating inheritance tax and, if necessary, introduce you to an Independent Financial Adviser who will assess your situation and inform you of the pension protections best suited to you.
To find out more, contact your usual Beavis Morgan Partner.
