As usual there is a lot of noise in the run up to the Budget which is next Wednesday 22nd November. The Treasury are always looking to raise extra funds and the chatter in the trade press is always around pensions, as this is an easy win for the Treasury.
One idea that seems to be getting a lot of traction is the potential loss of higher rate tax relief on pensions. Currently, if you are a higher rate tax payer paying 40% or 45% income tax you can claim back 40% or 45% on your personal pension contributions. They may want to trim this down to 30% or down to the basic rate at 20%.
Therefore, if you are definitely thinking of making a personal contribution to your pension (not a company contribution) this tax year then it may be worth paying it in before next Wednesday so that you can claim the full tax relief available now.
No guarantees that they will change the rules but we are just trying to keep you one step ahead of the game.