With changes to defined contribution pensions on the horizon, Neil MacGillivray looks at the burden this could bring on investors who pay higher or additional rate tax…
During the summer, HM Treasury published a call for evidence around pension tax relief. The premise behind the request is that certain low earning individuals do not enjoy tax relief on their pension contributions, whereas others do. There are three ways in which personal contributions to a pension can obtain tax relief; a net pay arrangement, relief at source (RAS) and gross contributions. These relief methods have evolved over time with net pay and RAS becoming the main modes. A net pay arrangement works on the basis that an individual receives tax relief at their marginal rate w...
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