April 2016 Pension Legislation Tax Changes: Calculator and Protections
Following our presentations on the April 2016 Pension Legislation Changes we wanted to make you aware of a new calculator which has been released to help you understand whether you’re likely to be impacted by the changes in your Annual Allowance, (the amount of your annual pension contributions that you can pay in tax free). We also wanted to highlight more information on the 2016 Fixed and Individual Protections. This may be of interest to those who are likely to exceed their Lifetime Allowance (the limit on the pension savings you can build up over your entire working lifetime before a tax penalty applies).
Annual Allowance Calculator
Towers Watson recently released an Annual Allowance Income Calculator as an interactive App. This free App allows you to estimate the total amount of tax relievable pension contributions you can make into your pension scheme during the next tax year.
Please click here for more information on this App.
Protections - Lifetime Allowance
There are also two forms of transitional protection which have become available for those who may have already built up large pension savings. The 2016 Fixed and Individual Protection may help you to avoid any retrospective taxation. We’ve attached a link which provides an overview of these protections below. We would always suggest speaking with your financial advisor to understand what action may be most appropriate in your circumstances.
Remember, you can click here to view our previous slides and video recording of the April 2016 Pension Legislation Tax changes. You can also click here to find a summary of the 2015 Summer Budget changes.
If you require further information please see below.
Independent financial advice – find local advisers at: https://www.unbiased.co.uk/
Free and impartial Government advice service: https://www.pensionwise.gov.uk
The Telefónica Pensions Team,