Wealthy pension savers have been handed a one-off "bonus" allowing them to invest an extra £40,000 this tax year.
For anyone who will be caught by the annual allowance of £10,000 a year as from April 2016 this is well worth taking advantage of now. If you would like to speak to someone in the team about your pensions please do give us a call on 01865 781181.
Despite signs that the Government intends to slash the amount it spends on pensions tax relief, the unannounced anomaly, the result of changes to a little-understood rule, will come at a £70m cost to taxpayers. Accountants say the one-off bonus is an unintended consequence of changes the Government is making to the way it collects pension income data. The extra allowance is an opportunity for some high earners to continue claiming 45pc tax relief on pension contributions, even thought the Government has put in place plans to prevent them from doing so.