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Tax Relief Cap on Pensions
jumperabv3
Posts: 1,231 Forumite
in Cutting tax
It says:
http://www.hmrc.gov.uk/incometax/relief-pension.htm
What happens if you don't pay tax?
If you don't pay tax you can still pay into a personal pension scheme and benefit from basic rate tax relief (20 per cent) on the first £2,880 a year you put in. In practice this means that if you pay £2,880 the government will top up your contribution to make it £3,600. There is no tax relief for contributions above this amount.
Is this cap of £2,880 going to be raised from April 2014 or going to remain the same?
http://www.hmrc.gov.uk/incometax/relief-pension.htm
What happens if you don't pay tax?
If you don't pay tax you can still pay into a personal pension scheme and benefit from basic rate tax relief (20 per cent) on the first £2,880 a year you put in. In practice this means that if you pay £2,880 the government will top up your contribution to make it £3,600. There is no tax relief for contributions above this amount.
Is this cap of £2,880 going to be raised from April 2014 or going to remain the same?
0
Comments
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jumperabv3 wrote: »It says:
http://www.hmrc.gov.uk/incometax/relief-pension.htm
What happens if you don't pay tax?
If you don't pay tax you can still pay into a personal pension scheme and benefit from basic rate tax relief (20 per cent) on the first £2,880 a year you put in. In practice this means that if you pay £2,880 the government will top up your contribution to make it £3,600. There is no tax relief for contributions above this amount.
Is this cap of £2,880 going to be raised from April 2014 or going to remain the same?
No increase has been preannounced but on budget day, who knows?The only thing that is constant is change.0 -
Thank you.0
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zygurat789 wrote: »No increase has been preannounced but on budget day, who knows?
If the basic rate of tax is reduced and the cap is not changed then the amount actually paid of £2880 will increase.The only thing that is constant is change.0 -
the £3600 hasn't been increased for many years.0
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grey_gym_sock wrote: »the £3600 hasn't been increased for many years.
I can't see that it has ever been increasedThe only thing that is constant is change.0 -
well, it was increased from 0 (when it was introduced).0
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grey_gym_sock wrote: »well, it was increased from 0 (when it was introduced).
Surely you can only INCREASE something which actually existsThe only thing that is constant is change.0 -
zygurat789 wrote: »Surely you can only INCREASE something which actually exists
the march hare would disagree.0 -
grey_gym_sock wrote: »the march hare would disagree.
But I'm not that mad, are you?The only thing that is constant is change.0 -
that's not for me to judge ...0
This discussion has been closed.
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