In his Budget today Chancellor Rishi Sunak has relieved considerably some of the currently onerous restrictions on pension contributions for higher earners.
For the tax year 2020/21, reductions in the annual maximum contribution limit will only apply to people:
a) whose taxable income exceeds £200,000 (previously £110,000) and
b) additionally, whose taxable income plus imputed employer pension contribution exceeds £240,000 (previously £150,000.)
For the very highest earners - with taxable income and imputed employer contributions in excess of £300,000 -the £40,000 limit will taper down to a maximum of £4,000 (previously £10,000).
Many individuals, whose pension contributions have been restricted may now have far greater opportunities for pensions savings in the new tax year.