Budget 2012: a window of opportunity for pensions

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In light of last week's Budget announcements, Peter Ng, IFA at Retirement Solutions, reviews what the changes to pensions tax relief will mean to those retiring.

In his 2012 budget, Chancellor George Osborne did as we all predicted and reduced the highest rate of income tax from 50p to 45p as of April 2013. The Chancellor said the 50p tax had always been a temporary measure but had only raised around one third of the £3bn the previous government had said it would. Although the rate only affects those earning more than £150,000, it is useful to examine what this means to those at or approaching retirement. Pension contributions For a while now, I have been suggesting to clients that they contribute to their pension and take advantage of any p...

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