Curtail effects of AA taper by contributing to pensions now - Les Cameron

Tapering rules ‘fiendishly complex’

Hannah Godfrey
clock • 2 min read

High earners can offset the effects of the annual allowance taper by contributing to their pensions - but they need to act fast, Prudential's Les Cameron has said.

The rules around the taper, which was implemented last year, mean those who have a taxable income in a given year of more than £150,000 will have their annual allowance restricted. For every £2 of income an individual earns in excess of £150,000, the annual allowance is reduced by £1. The maximum reduction is £30,000, so those with an annual income of more than £210,000 will have an annual allowance of just £10,000.  However, Prudential head of technical Les Cameron (pictured) said contributing a sufficiently large portion of yearly income into a pension pot could avoid such a drop in...

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