Confusion over pension contribution cap resolved

The Government has moved to resolve the confusion over the amount some people can pay into their pension. Although, not everyone will be happy with the news. Announced in the Budget earlier this year, the change proposed a cut in the amount some people could pay in to their pension. Known as the Money Purchase Annual Allowance (MPAA), it caps the amount some people, who have already drawn money from their pension under the new Pension Freedom rules, can subsequently contribute. The Government proposed a cut from £10,000 to just £4,000. However, ...

Pension and dividend tax changes dropped as election looms

Confusion reigned this week as the Chancellor, Philip Hammond, revealed that two measures previously announced in his Budget will not go ahead. For now, anyway. Mr Hammond’s Budget, delivered in early March, will be remembered for the proposed National Insurance rise for self-employed workers. A few days later, following protests and a media backlash, he changed his mind. It now seems that two other measures, which would have affected pensioners and shareholders, will now not go ahead. Contribution cut Prior to the Budget, the Money Purchase Annual Allowance (MPAA), the maximum people who have withdrawn money ...

Retirement: Pension contribution limit cut for over 55s

Pensions: Is tax-relief about to be cut?The fallout from the final Autumn Statement continues, as some people come to terms with a cut in the amount of money they can pay into their pension. The change will affect people aged over 55 who have taken money from their pension, but also wish to continue contributing, perhaps because they are still working. Annual Allowance Currently, the maximum amount you can pay into your pension is the lower of 100% of your earnings, or £40,000; this is known as the Annual Allowance. However, if you are ...