Annual allowance shake up: Pension input periods split into 'mini tax years'

In his Summer Budget, the Chancellor announced that from 2016-17 onwards, the annual allowance for tax-relieved pension savings would be reduced for those with incomes of more than £150,000. It will be cut by £1 for every £2 of income an individual has over £150,000 with a maximum reduction of £30,000. In advance of the introduction of this tapered annual allowance the government has introduced transitional rules to align pension input periods with the tax year by April 2016 and to protect any savings already made before Budget from retrospective tax charges. As part of the changes...