Quick question on pensions and tax...?
Discussion
A few years ago, because pension contributions were taxed at the base rate and as a higher rate payer I was able to reclaim the difference between the base rate of tax and the higher rate on my personal pension contributions, this I did through my tax return.
Then for a few years I didn't contribute (I bought a flat instead) now for the last 2 years I re-started a pension but when I completed my tax return I couldn't see any way to reclaim the difference on my contributions (not those made by my company). Have the rules changed and there's no relief on pension contributions anymore?
Then for a few years I didn't contribute (I bought a flat instead) now for the last 2 years I re-started a pension but when I completed my tax return I couldn't see any way to reclaim the difference on my contributions (not those made by my company). Have the rules changed and there's no relief on pension contributions anymore?
Eric Mc said:
For the moment, the rules are as they have been for years. But the Higher Rate Relief will probably go in the next budget.
Get your claim in NOW.
No way Get your claim in NOW.
They will just lower the point at which you can claim (as they did last time)....5 years, i agree - no HRT relife, but not this year (or next)Sorry for the threaed hijack, did you used to be able to 'cash in' your pension (I expect there would have been a hefty chunk of tax payable on this)?
And have things changed so that pension money is untouchable? What if my situation changed significantly and I thought that one of my pensions would be more use to me now than in 30 years time!?
Sorry (again) and thanks!
CH
And have things changed so that pension money is untouchable? What if my situation changed significantly and I thought that one of my pensions would be more use to me now than in 30 years time!?
Sorry (again) and thanks!
CH
In most cases the answer is going to be no - the downside of tax relife and tax free (ish) growth is lack of felxability. At 55 you can start getting your hands on it (but even then, only a % of the fund) - until then (unless you're in an unusual job) you cant have the money - and, TBF to the system...its a good thing, because many people would just take their money now and spend it!
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