Foster Denovo|News & blogs|News|High earners: act before 6 April

High earners: act before 6 April

Radical changes to pension schemes being introduced by the government could leave high earners with unexpected tax bills, warns Secondsight, the employee benefits arm of Foster Denovo.

From 6 April 2016, the annual allowance will be tapered from £40,000 for those with earnings of £150,000 or more down to £10,000 for those with income of £210,000 or more.

Income will no longer just be comprised of someone’s salary. It will be “adjusted” to include employer pension contributions or any other income, including savings, bonuses or even buy to let property rental – taking many more people into a higher earnings bracket. The annual allowance will reduce by £1 for each £2 of adjusted earnings above £150,000 until it reaches £10,000.

Read the full article on Pensions World.

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