Is it evem possible?

sgx2000

So, 
Not whether it is likely or not..
But
Is it even practically possible for the rate of tax relief to be changed during the current tax year....

I am asking because I have retired this year, but could potentially add to my pension to gain the tax relief....
But apart from the £3600 wont be able to do it next tax year

If it is pretty much impossible I might as well do it now....

pjread

It's possible, but would be borderline suicidal, for it to be changed either 'immediately' or even backdated/retrospective.  

I would be amazed if any changes were not "from next tax year", but I've been amazed before.  Personally I'm treading water until post-budget as no huge reason to rush. 

LHW99

If you have the money (not immediately needed), and earned income, and your current contributions are under the MPAA, IMO you may as well add it as soon as, because (IMO) a) if a basic rate taxpayer the money that goes in gets an immediate effective 6.25% boost (if higher rate then there is more benefit) b) Assuming you are over 55 (currently) you could take at least the tax free portion of what you invest back out reasonably quickly if you need to c) If under 55, the longer money is invested the more benefit there is long term (or you could keep it in cash / MMF if you think you would need it quickly)

Dazed_and_C0nfused

sgx2000 said:

So, 
Not whether it is likely or not..
But
Is it even practically possible for the rate of tax relief to be changed during the current tax year....

I am asking because I have retired this year, but could potentially add to my pension to gain the tax relief....
But apart from the £3600 wont be able to do it next tax year

If it is pretty much impossible I might as well do it now....

If you consider the NI saving on sacrificing earnings into employer contributions as a form of "tax relief" then there has been recent precedent where the relief reduced in year.

But that was unusual and most working people would have still benefited anyway from 10% NI instead of 12%.

Grumpy_chap

sgx2000 said:

So, 
Not whether it is likely or not..
But
Is it even practically possible for the rate of tax relief to be changed during the current tax year....

I am asking because I have retired this year, but could potentially add to my pension to gain the tax relief....
But apart from the £3600 wont be able to do it next tax year

If it is pretty much impossible I might as well do it now....

Whether or not to make contributions now rather than after the budget might depend on whether you are basic rate or higher rate tax payer.

Obviously, it depends on which rumours you believe as well.

One of the most common rumours is that the current 20% / 40% tax relief on pension contributions will become a flat rate at 30%.  I don't know whether that change can be immediate or must wait until the new tax year. 
If you are 40% tax payer AND plan to make the contributions anyway this tax year AND have the funds available, then might as well get the contribution in before the budget just in case of an instant change to flat rate 30% relief.
If you are 20% tax payer, then might as well wait until after the budget just in case the instant change to flat rate 30% relief happens.

The latest rumours in the press seem to suggest that the flat rate 30% relief on pension contributions is not the most likely change to happen in any case.