End of ‘Basis Years’

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
2 replies 1.4K views
dunstonhdunstonh Forumite
106.8K Posts
Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
✭✭✭✭✭✭
At the moment a pension contribution can be paid to a personal pension based on the earnings in the current tax year or any one of the previous five years (provided the earnings used are net relevant earnings). This effectively means that a contribution paid today could be more than 100% of the current earnings (especially when someone has retired) but after A-Day the ‘Basis Year’ rules will disappear with the ability to only obtain tax relief on personal contributions of £3,600 or 100% of earnings, whichever is the higher.
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.

Replies

This discussion has been closed.
Latest MSE News and Guides

Top savings accounts

Up to 1.7% fixed or 0.6% easy access

MSE Guides

24 craft beers for £26 delivered

Flavourly newbies only (norm £70ish)

MSE Deals