The following is a summary of the current pension contribution guidelines at a high level:
- Up until 2013/14, you can contribute up to £50,000 per year to your pension. But now that cap has been lowered to £40,000.
- If your yearly taxable earnings or retirement savings exceed £240,000 (£150,000 for 2016–2019 and 2020–21). Your annual allowance will be cut to a minimum of £4,000 and your lifetime limit will be reduced to £1,073,100.
- A tax credit equal to the donor’s highest marginal rate will be given to those who contribute up to the annual maximum. A tax credit that has not been used within three years might be carried over to the following year. You may find yourself in a position to increase your pension contributions dramatically.
- Information on contribution deduction limits and other tax benefits; financial consequences of exceeding yearly and lifetime contribution restrictions.
- Choices accessible to you as you approach retirement; Alternatives to retiring in the United Kingdom
- It is essential to assess all of your financial possibilities. Such as investments and tax techniques that reduce your tax liability.
Our number one concern is that your chosen investment strategy is consistent with your long-term financial and tax goals.
If you require the services of a Tax Advisor for Retirement pension planning, please get in touch with us at 02071559545 or info@taxsteins.co.uk
