The annual allowance is the maximum pension contribution that will receive tax relief in the tax year.
The annual allowance in tax year 2020/21 is £40,000. For higher earners this may be reduced by something called the tapered annual allowance (TAA).
In certain circumstances it may be possible to carry forward unused pension annual allowance from previous tax years. The rules are extremely complicated and may depend upon something called pension input periods
When planning to maximise pension contributions it is vitally important to take independent financial advice before starting or altering contributions. The tax implications of mismanaging the timing of pension contributions can be severe.
As independent financial advisers Farrell Financial Planning offer independent advice on pensions and the timing of large pension contributions. Our expert advice can ensure maximum tax efficiency and compliance with the current pension rules.
Contact us today and find out how our expert advice can help you plan for your retirement with confidence. We offer a free initial consultation on a no obligation basis.
Farrell Financial Planning do not only serve the Glasgow, Edinburgh, Lanarkshire & Ayrshire areas. We advise individuals and businesses from all over Scotland and the rest of the UK.
Our Scottish base in Glasgow is no barrier to advising on pensions across the UK.
It is crucial to obtain expert professional advice on pensions as the rules can be extremely complicated.
A pension is a long term investment. The fund value can fluctuate and go down. All information is based on Farrell Financial Planning’s understanding of UK law & HMRC practice in the UK. Tax and legislation are subject to change.