Welcome to the pensions gold rush

Wkeen savers are expected to pour money into their pension funds to avoid inheritance tax, thanks to radical pension reforms.

The chancellor, Jeremy Hunt, scrapped the £1,073,100 lifetime allowance on pensions, which limits the amount you can add to your pension fund without paying up to 55 per cent tax when you withdraw it.

In his Budget he also increased the annual pension allowance – the amount you can add to your pension each year while still getting full tax relief – from £40,000 to £60,000. This starts from April 6th. You can carry forward £40,000 from each of the three previous tax years (provided you didn’t pay into a pension in those years) with the new amount you can add

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top
%d bloggers like this: