HMRC has issued new guidelines on the recent changes to the tax relief available on pensions. As part of the changes, the annual allowance for tax relief on pensions has been cut from £255,000 to £50,000 for 2011/12. The annual allowance covers how much can be paid into a pension pot while attracting tax breaks.
Now HMRC has published its latest, updated guidance on what the new limit means for pension savers. In some circumstances, HMRC said, savings added to a pension fund between 14 October and 5 April may come under the remit of the new rules.
The new guidance can be found on the HMRC website.
If you would like any help or advice as to the effect that the rules may have on you or your pension investment, please don’t hesitate to call us.