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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

PA Asks: Has demand for IHT mitigation risen at your firm?

PA Asks: Has demand for IHT mitigation risen at your firm?

This week’s poll also looks at the role of MPS and paperless operations

Professional Adviser
clock 25 March 2024 • 1 min read
FCA urged to prioritise a 'common sense' approach

FCA urged to prioritise a 'common sense' approach

Last week’s PA Asks poll highlights industry’s thoughts on the FCA

Sahar Nazir
clock 25 March 2024 • 2 min read
Advisers overlooking younger clients over asset value bias

Advisers overlooking younger clients over asset value bias

'Young people need to have access to trusted advice'

Sahar Nazir
clock 22 March 2024 • 1 min read