Potential Pensions Tax for High Earners

February 15th, 2016

Experts say up to half a million people could be hit by new restrictions in the lifetime pensions allowance, says the Financial Times. The reduction in the allowance from £1.25 million to £1 million in April means that anyone earning over £80,000 a year could face a 55% tax charge. Anyone with a pension fund currently worth over £600,000 – which includes many members of ‘final salary’ schemes – could also be hit. Experts said these people should act now since there are official schemes they can register with to avoid the tax liability.