Her Majesty's Revenue and Customs (HMRC) has altered its interpretation of annual allowance rules to let investors save more this year.
Under rules that came into force in April this year, investors would are allowed to "carry forward" their annual allowance (AA) on pension contributions from the previous three years to avoid paying high tax charges on contributions of more than £50,000 this year. Previously, these rules were interpreted so that investors who saved more than £50,000 in 2009/10 or 2010/11 would use up some of their AA from previous tax years, reducing what they could carry forward. However, HMRC has confirmed that AA from earlier tax years will not be used up by large contributions in 2009 and 2010. ...
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