Budget changes to pension taper
Posted: March 11th, 2020, 4:23 pm
by JuanDB
There seems to be a pretty significant hike in the floor value for pension tapering from £150k to £200k in today's budget. I had just run out of carry forward allowance and was faced with being limited to £10k contributions next year. This is surprising and positive news as I was expecting more contribution restrictions rather than less.
Details still a bit vague, needs a definitive source.
https://www.cityam.com/budget-2020-chancellor-raises-threshold-for-pensions-tax-relief-to-200000/
Re: Budget changes to pension taper
Posted: March 11th, 2020, 4:48 pm
by ursaminortaur
JuanDB wrote:There seems to be a pretty significant hike in the floor value for pension tapering from £150k to £200k in today's budget. I had just run out of carry forward allowance and was faced with being limited to £10k contributions next year. This is surprising and positive news as I was expecting more contribution restrictions rather than less.
Details still a bit vague, needs a definitive source.
https://www.cityam.com/budget-2020-chancellor-raises-threshold-for-pensions-tax-relief-to-200000/
Yes, there was talk about him doing this a little while ago - as your linked article explains it is mostly to deal with the problem of NHS doctors refusing overtime because the taper combined with their DB pension means that they go over the reduced annual allowance and face a charge.
Making the announcement in the context of support for NHS workers facing the coronavirus crisis, Sunak said it would take about 98 per cent of consultants and 96 per cent of GPs out of the taper.
Re: Budget changes to pension taper
Posted: March 11th, 2020, 5:03 pm
by PinkDalek