Use or lose it: Tax efficient ways to top up clients' annual allowance

clock • 4 min read

Colin Batchelor of Legal & General Savings explains how your clients can still make significant contributions to their pensions despite a reduction in the annual allowance rules.

Although the annual allowance (AA) reduced from £255,000 to £50,000, opportunities exist to pay contributions far greater than £50,000 without incurring tax charges and, furthermore, tax relief is available at marginal rates. Individuals who have maximised their £50,000 AA in 2011/2012 can carry forward unused AA from pension input periods (PIPs) ending in the three previous tax years (provided they were members of a registered pension scheme in those years). Advisers should determine from scheme administrators when clients' PIPs start and end (this won't necessarily align with tax ye...

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