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Higher rate tax payers should make the most of pension tax reliefs ahead of Budget

Britain’s highest earners should consider reviewing their pension tax relief plans ahead of an expected raid by Chancellor Philip Hammond in November’s Budget, according to deVere Group.

The warning follows concerns that pension tax reliefs will be limited in the Budget and deVere advises higher rate tax payers to make contributions under current reliefs while they can.

Nigel Green, Founder and CEO of deVere Group said: “The Chancellor has huge funding gaps to fill in public services and it can be expected that pensions will again be attacked to bolster government coffers. Such a raid on people’s hard-earned retirement nest eggs would highlight once more that successive British governments consider people’s retirement savings as easy, low-hanging fruit to be plucked when necessary.” 

“As it is likely the pension contribution relief for those on higher incomes will be reduced, many might now consider making a larger one-off contribution before the Budget, in order to benefit from the higher tax relief whilst they still can.

 “If Mr Hammond does announce this measure, it would be another hammer blow for those who have worked hard to get ahead in life through prudently saving for their future. Continually raiding pensions tax relief is helping to undermine a culture of saving at time when it has never been more necessary to promote it. We’re all living longer, meaning savings need to last longer, debt levels are high, care and health costs are climbing, and financial security is ever-more a personal responsibility.” 

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