Last chance to top up your pension before tax relief is restricted

August 21, 2015 | posted in Industry Comment


From 6th April 2016, 45% tax relief on pension contributions will be restricted on a graduated basis on income over £150,000.

Impact – Relief will be only applied on £10,000 of contributions over earned income of £210,000.

Tax Year 2015/16 – Opportunity Pension Plan


  1. Changes to pension input period – Allows maximum funding of £80,000 – All allowable at the highest marginal tax rate you pay. Alternative is to pay HMRC!
  2. Use pensions to reclaim your personal allowance.  You lose £1 for every £2 earned over £100,000 – Impact – Tax rate between £121,200 and £150,000 is c60%.                                                                    
  3. From 6th April 2016 – Individuals with earnings over £60,000 will be facing the high income child benefit charge –use pensions to bring your earnings under this threshold.

Maximise this opportunity  by speaking to one of our chartered financial advisers.