5th February 2016

Prudential: Higher rate tax relief opportunity

There is high level of speculation that the Chancellor will announce a change to the way in which tax relief on pension contributions work in his budget on 16 March.

It is important to remember that until the 16 March we won’t know for definite what, if any changes will be made. However in the meantime, you may wish to discuss the opportunity for higher and additional rate tax clients to take advantage of the current maximum pension contributions available.

There may be an extended period until any potential charges are implemented, it is possible that anti – forestalling measures may be introduced as soon as the announcement is made, designed to prevent anyone abusing the period between a change being announced and coming into force.

A sample approach letter has been produced for you to send to your clients that may be concerned that from the 16 march the system may change to their detriment.

Take a look at the Tax year end microsite on PruAdviser where there is a range of other information and support available to help you in the run up to tax year end. 

Tax, Trust & ISA