Beware of the 40% tax creep

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Neil MacGillivray discusses the impact of recent changes to personal allowances on your clients' pension planning

In this year’s budget, great emphasis was placed on the continued large increases in the personal allowance. The allowance increased by £1,335 to £9,440 in the tax year 2013/14 and the much heralded increase to £10,000, is being brought in a year ahead of schedule in 2014/15. This means, come April 2014, the personal allowance will have increased by over 54% in just four years. But, and it is a big but, there is an underlying trend which has not received as much publicity and this could have a significant impact on your clients’ planning decisions. On the upside, all appears to be goo...

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