The tapered annual allowance was introduced in April 2016 and reduces the annual allowance available to high earners.
In tax year 2020/21 anyone with income above £240,000 may be affected. The minimum amount which the annual allowance can be reduced to is £4,000.
The actual rules involved are particularly complicated and expert advice is required to avoid being liable to an annual allowance tax charge.
As independent financial advisers Farrell Financial Planning offer independent advice on pensions and the timing of large pension contributions. We are fully up to date with all of the recent changes to the tapered annual allowance rules. Our expert advice can ensure maximum tax efficiency and compliance with the current pension rules.
Contact us to find out how our expert advice can help you plan for your retirement with confidence.
Farrell Financial Planning independent financial advisers based in Glasgow. 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.