Retirement: Pensions Minister calls for changes to pension tax-relief

Pensions Minister calls for changes to pension tax-reliefSteve Webb, the Pensions Minister, has called for a further overhaul of pensions; this time focusing on the tax-relief paid when contributions are made and the maximum amount which can be held in a pension pot without incurring tax charges. Tax –relief on pension contributions At present pension contributions attract tax-relief at a minimum rate of 20%. This means someone saying £80 into their pension will be ‘credited’ with £100; higher rate taxpayers can claim a further ...

Tax: New research shows Briton’s pay £12.6 billion in unnecessary tax each year

Research from the Unbiased.co.uk website, which helps UK consumers contact Independent Financial Advisers (IFAs), has unveiled some shocking facts about the amount of tax Briton’s pay each year. The latest Tax Action report from Unbiased.co.uk claims that the average person in Britain overpays tax to the tune of £421 each year by arranging their finances inefficiently. The total in overpaid tax is £12.6 billion. Our advisers can help you get your savings working harder for you...

Budget 2012 Reaction: More people dragged into Higher Rate Tax

Research has shown that even people of “relatively modest salaries” will be dragged into higher rate tax as a result of this week’s Budget. The Institute for Fiscal Studies (IFS) has predicted that as many as five million people could be paying higher rate tax, at 40%, by 2014; by contrast last year 3.7 million people paid tax at the upper rates. In the Budget George Osborne also announced the end of age related allowances for those people over 65. The IFS said the “granny tax”, as it has quickly been dubbed, would cost pensioners approximately 0.25% of the annual income in ...