Pension Contribution Relief changes

Prior to today's budget there has been speculation regarding pension relief changes. This was partly driven by Doctors refusing to work extra hours in the NHS because if they did they would get hit with a tax charge in respect of their pension contributions/accrual.

To resolve this issue the Government has announced that "Following an increase in the threshold income and adjusted income, those individuals with a threshold income of between ￡110,000 and ￡200,000 and adjusted income between ￡150,000 and ￡240,000 will no longer be impacted by the tapered annual allowance."

There will, however, be some who will have less relief. For those who will remain subjected to the "tapered annual allowance, the minimum tapered annual allowance will be ￡4,000 (currently ￡10,000)".

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