Dear George: Why the annual allowance taper should be scrapped

Advisers are unhappy about the taper plans

clock

The proposed taper of the annual allowance on pension contributions is causing problems for financial planners, writes Claire Trott. Here she explains why the government needs to go back to the drawing board...

Although the taper of the annual allowance for high earners hasn’t come into force yet, the details of the measure has received great criticism from the advisers I have been talking to. The main issue is the lack of ability to plan, because the amount of an individual’s annual allowance is determined by their income within the same tax year, so it will be virtually impossible for anyone with income other than a set salary to determine the exact amount they are entitled to. The other issue is that should they contribute in excess of the annual allowance, they are not entitled to a refu...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

King's Speech has limited impact on pensions

King's Speech has limited impact on pensions

Pensions UK says there may be pension implications from other aspects of the legislative programme

Jonathan Stapleton
clock 13 May 2026 • 1 min read
Pensions and divorce: Where advisers can add the most value

Pensions and divorce: Where advisers can add the most value

'A pension is not simply another line on a balance sheet'

Tim Latham
clock 12 May 2026 • 4 min read
'A paralysis of the UK pension system' - The reality of transfer delays

'A paralysis of the UK pension system' - The reality of transfer delays

Provider ‘stalling’ causing tense SASS client case

Isabel Baxter
clock 12 May 2026 • 6 min read