Pension savings enjoy substantial tax breaks. However, it is easy to fall foul of the ‘annual allowance’ and ‘lifetime allowance’ limits – which can sometimes result in effective tax rates of 100% or more. The recently amended AA ‘tapering-down’ rules, together with the ‘freezing’ of the standard LTA, have increased the potential risks. There are also other potential risks/hidden tax traps to beware of. However, careful planning and utilisation of e.g. the AA ‘carry-forward’ rules still often leaves a lot of scope for tax-efficient pension savings. Furthermore, any ‘international’ angle may well substantially increase the potential planning opportunities (and complexities).
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Pension savings enjoy substantial tax breaks. However, it is easy to fall foul of the ‘annual allowance’ and ‘lifetime allowance’ limits – which can sometimes result in effective tax rates of 100% or more. The recently amended AA ‘tapering-down’ rules, together with the ‘freezing’ of the standard LTA, have increased the potential risks. There are also other potential risks/hidden tax traps to beware of. However, careful planning and utilisation of e.g. the AA ‘carry-forward’ rules still often leaves a lot of scope for tax-efficient pension savings. Furthermore, any ‘international’ angle may well substantially increase the potential planning opportunities (and complexities).
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
