Mar 11 2020

Budget 2020

General News

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. 

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