Did Someone Mention a Pension?

Taxing Times indeed ! So now more than ever does one need to consider the future. Pensions have and always will be a good way to save money for when you want to retire (yeah right !) and you have always been able to obtain tax relief from your contributions. However this is about to change with the the new legislation coming into play,

HM Revenue and Customs (HMRC) has issued new guidelines on the recent changes to the tax relief available on pensions.As part of the changes, the annual allowance for tax relief on pensions has been cut from £255,000 to £50,000 for 2011/12.The announcement was confirmed last October. Those that have received large bonuses lor have just come into some money may want to think about other avenues to invest as they will not obtain higher rate relief and they may be faced with an additional tax charge if invested.

The annual allowance covers how much can be paid into a pension pot while attracting tax breaks.
Now HMRC has published its latest, updated guidance on what the new limit means for pension savers.
In some circumstances, HMRC said, savings added to a pension fund between 14 October and 5 April may come under the remit of the new rules. The new guidance can be found at http://www.HMRC.gov.UK/pensionschemes/annual-allowance/index.htm

I still believe pensions offer something very important but do not assume you can just throw your money at a pension. The rules are packed with anti forstalling legislation so I suggest contacting me for further information.

mitch@ljd.uk.com