The dangers of pension lump sums

Since April 2015, people with private pension funds have had far more freedom about what they can do with their “pot” and many more people are taking advantage of this. They are able to take their whole pension as a lump sum without having to buy an annuity or similar...

Tax relief on Pension lump sum withdrawals

If you are thinking of taking a lump sum from your pension fund, you should definitely talk to your accountant to go through the tax issues.  Pension lump sums are taxable income so it is important to minimise the tax you pay or the extra tax cancels out the tax...

The Annual Pension Allowance – and overfunding

General rule  For pension contributions, there is an Annual Allowance (of £40,000 for 2018/19) which is the maximum one can pay into a pension scheme in a tax year.  If you (or your employer) don’t use all of the Annual Allowance, then you can carry forward...

Tax Relief on Pensions Explained

There are a few issues that we regularly see around the subject of tax on pensions:  Employees earning over £46,350 (the Higher Rate Tax threshold for 2018/19), sometimes think they will automatically obtain tax relief on their contributions when they pay into a...