Pensions can provide significant planning opportunities, but the rules are complex, and it is worth taking advice to maximise the benefits.
Autumn Budget 2017 confirmed more generous limits for the Lifetime Allowance for pensions - the 2017/18 £1 million Lifetime Allowance rises to £1,030,000 for 2018/19. This is the ceiling on the value of pension funds from which benefit can be drawn without incurring an extra tax charge. The annual allowance will not change, remaining at £40,000. This is the maximum you can contribute to a pension and still get tax relief.
In many circumstances, you may have unused annual allowances from the three previous years which can be utilised in 2017/18. Please talk to us for more advice here.
Remember all individuals, including children, can obtain tax relief on personal pension contributions of £3,600 (gross) each year without reference to earnings: also, that for directors of family companies, it can be advantageous for the company to make employer pension contributions.