Dear George: Why the annual allowance taper should be scrapped

Advisers are unhappy about the taper plans

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The proposed taper of the annual allowance on pension contributions is causing problems for financial planners, writes Claire Trott. Here she explains why the government needs to go back to the drawing board...

Although the taper of the annual allowance for high earners hasn’t come into force yet, the details of the measure has received great criticism from the advisers I have been talking to. The main issue is the lack of ability to plan, because the amount of an individual’s annual allowance is determined by their income within the same tax year, so it will be virtually impossible for anyone with income other than a set salary to determine the exact amount they are entitled to. The other issue is that should they contribute in excess of the annual allowance, they are not entitled to a refu...

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