Don’t get caught out paying tax on a pension contribution as it defeats the object.
For those whose income sits between £100,000 and £140,000, don’t forget that pension contributions and Gift Aided charitable donations can be used to help regain your personal allowance. With the effective tax rate on income between £100,000 and £125,000 being a colossal 60% tax, this is a significant saving!
As ever, the devil is in the detail in terms of determining your assessable income levels, existing pension contributions and carry forward scope, so with less than 2 months to the end of the current tax year, do get in touch with us to discuss the finer details of your own pension contribution planning needs.
- The value of your investments can go down as well as up, so you could get back less than you invested
- The tax treatment of certain products depends on the individual circumstances of each client and may be subject to change in future
- Bowmore Financial Planning Ltd is authorised and regulated by the FCA
- Bowmore Financial Planning is not regulated to provide tax advice