Tax Year End Planning Newsletter – January 2016
We are pleased to bring our Tax Year End Planning newsletter
This newsletter contains information concerning the four key tax changes that we know about, what the future for pensions tax relief might look like, and what action might be appropriate for you before the end of this tax year.
1. The reduction of the lifetime allowance (the amount that you can hold inside a registered pension fund without tax penalties) from £1.25m to £1m from 6 April 2016.
2. The gradual reduction in the annual allowance (the amount that can be invested or accrued in your pension without any tax penalty each year) from £40,000 to £10,000 for those whose total income from all sources and including pension contributions (more details on this later) exceeds £150,000. The maximum reduction (to £10,000) suffered when income reaches £210,000. This applies from 6 April 2016.
3. A special opportunity in the current tax year to possibly contribute up to a further £40,000 tax effectively to pensions.
4. A change to the taxation of dividends and savings income (interest) from 6 April 2016 delivering some further tax freedom and some potentially higher tax rates.
We hope you find this information useful.
Please contact us should you wish to discuss your tax year end planning.
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