Pension tax relief warning (higher rate)
Discussion
Article in FT today - there is a rumour that Gunment may remove high rate tax relief on pension contributions
http://www.ft.com/cms/s/2/818e25f0-25c5-11de-be57-...
http://www.ft.com/cms/s/2/818e25f0-25c5-11de-be57-...
haworthlloyd1 said:
im in the industry mate and i think its big news.
higher rate tax relief is one of the few things that make pensions attractive alongside protection on bankruptcy and IHT relief
otherwise why have 20% tax relief to be taxed on the other side, and is 20% relief really worth it considering negatives for a pension?
It would kill off pension planning
Certainly would.higher rate tax relief is one of the few things that make pensions attractive alongside protection on bankruptcy and IHT relief
otherwise why have 20% tax relief to be taxed on the other side, and is 20% relief really worth it considering negatives for a pension?
It would kill off pension planning
It won't happen as this country's shifting age demographics means that we are becoming more and more reliant on the spending power of the over 60s as well as their time contributions to charities and domestic help.
To ensure that all pensioners were equally impoverished would kill off far more than the pensions industry.
Obviously, Winky McFN will focus on short term revenue savings to cover his appalling financial activities of the last decade but I'm confident that there are enough common sense individuals in the commons and Lords to prevent him being so stupid.
It will be interesting to see what the Budget has to say on this.
Which reminds me - I really ought to finally get around to trying to reclaim the higher rate relief on my last six years' pension contributions. I don't quite know how I got to my mid-thirties, and a good number of years as a higher rate taxpayer, before I found out that it's up to me to claim the higher rate back.... Doh.
Knowing my luck, I'll finally pull my finger out and put the wheels in motion only to find that higher rate relief is abolished!
Which reminds me - I really ought to finally get around to trying to reclaim the higher rate relief on my last six years' pension contributions. I don't quite know how I got to my mid-thirties, and a good number of years as a higher rate taxpayer, before I found out that it's up to me to claim the higher rate back.... Doh.
Knowing my luck, I'll finally pull my finger out and put the wheels in motion only to find that higher rate relief is abolished!
Lurking Lawyer said:
It will be interesting to see what the Budget has to say on this.
Which reminds me - I really ought to finally get around to trying to reclaim the higher rate relief on my last six years' pension contributions. I don't quite know how I got to my mid-thirties, and a good number of years as a higher rate taxpayer, before I found out that it's up to me to claim the higher rate back.... Doh.
Knowing my luck, I'll finally pull my finger out and put the wheels in motion only to find that higher rate relief is abolished!
Surely you've done this on your tax return?Which reminds me - I really ought to finally get around to trying to reclaim the higher rate relief on my last six years' pension contributions. I don't quite know how I got to my mid-thirties, and a good number of years as a higher rate taxpayer, before I found out that it's up to me to claim the higher rate back.... Doh.
Knowing my luck, I'll finally pull my finger out and put the wheels in motion only to find that higher rate relief is abolished!
Lurking Lawyer said:
It will be interesting to see what the Budget has to say on this.
Which reminds me - I really ought to finally get around to trying to reclaim the higher rate relief on my last six years' pension contributions. I don't quite know how I got to my mid-thirties, and a good number of years as a higher rate taxpayer, before I found out that it's up to me to claim the higher rate back.... Doh.
Knowing my luck, I'll finally pull my finger out and put the wheels in motion only to find that higher rate relief is abolished!
I'm exactly the same. I went to cash on my pension at the end of 97 and out of curiosity I tried to reconcile my balance and was not able to. It was only then that I realised I was missing the higher rate rebate and then learned that I was supposed to have claimed it each year via Self Assessment.Which reminds me - I really ought to finally get around to trying to reclaim the higher rate relief on my last six years' pension contributions. I don't quite know how I got to my mid-thirties, and a good number of years as a higher rate taxpayer, before I found out that it's up to me to claim the higher rate back.... Doh.
Knowing my luck, I'll finally pull my finger out and put the wheels in motion only to find that higher rate relief is abolished!
All being sorted now by the accountant, which I should have employed years ago.
Still, all in, I suspect the zero performance of this cash will outperform the benchmarks quite nicely.
NoelWatson said:
Lurking Lawyer said:
It will be interesting to see what the Budget has to say on this.
Which reminds me - I really ought to finally get around to trying to reclaim the higher rate relief on my last six years' pension contributions. I don't quite know how I got to my mid-thirties, and a good number of years as a higher rate taxpayer, before I found out that it's up to me to claim the higher rate back.... Doh.
Knowing my luck, I'll finally pull my finger out and put the wheels in motion only to find that higher rate relief is abolished!
Surely you've done this on your tax return?Which reminds me - I really ought to finally get around to trying to reclaim the higher rate relief on my last six years' pension contributions. I don't quite know how I got to my mid-thirties, and a good number of years as a higher rate taxpayer, before I found out that it's up to me to claim the higher rate back.... Doh.
Knowing my luck, I'll finally pull my finger out and put the wheels in motion only to find that higher rate relief is abolished!
(b) After a couple of years of self-assessment with me having sod all to declare over and above income already taxed PAYE income, they told me I didn't need to submit a return.
haworthlloyd1 said:
im in the industry mate and i think its big news.
Fair point, it's big news. I suppose i meant it's no surprise....it simply cant continue as it is and thats been known for years. Interestingly, if they did away with it but re-introduced the charging structures from the 90's (and the commissions to go with it) you'd still see pension sales increase!Isn't there a quick bit of self-protection we can do here for anyone who is planning to put AVCs in but has the cash available now? If we open a personal pension before the budget with a decent lump sum equal to the AVCs we plan for the next year or two, then if higher rate tax relief is removed but not back-dated, we will have gotten in before (no need to make regular AVCs). If the change does not happen, or it is back-dated, then we can cancel the new pension within the month of cooling off period.
Obviously need to be confident that our income during this tax year will create a higher rate tax liability big enough to cover the lump sum and any other pension contributions this year... and given we are at the beginning of it that is quite a risky assumption, could lose job before earning enough this year.
Does this seem like a free option?
Obviously need to be confident that our income during this tax year will create a higher rate tax liability big enough to cover the lump sum and any other pension contributions this year... and given we are at the beginning of it that is quite a risky assumption, could lose job before earning enough this year.
Does this seem like a free option?
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