Pension loophole could profit HNW clients

The SIPP specialist recently uncovered a loophole in the A-Day pension regulations which allows very wealthy clients of IFAs who have received a bonus to earn additional tax relief as a result of changes to the law. The scheme works by allowing an individual who has earned a bonus payable in the current tax year to set their pension input period (PIP) before April 5 and then pay in a pension contribution. The client then pays in a second contribution after their PIP but before April 5, and both contributions qualify not just for basic relief but higher rate relief available through self-a...