Tax Free Pension Contributions
The Chancellor is widely expected to claw back the tax relief that high and middle-income earners are allowed on pension contributions, when he delivers his Autumn Statement on December 5th.
Following his lowering of the tax free contributions limit of £225,000 in his first budget, down to £50,000, he is no reportedly considering cutting this further to £40,000 or even £30,000.
This move is a bid to raise over 2 billion in taxes.
Faced with this effective tax hike on those higher rate tax payers already contributing to a pension, some financial advisers are telling their clients that they may want to consider bringing their contribution forward, while the existing annual allowance is still intact.
So far, the Treasury has declined to comment on anyproposed changes