Tapered annual allowance
On 6 April 2016 the government introduced the tapered annual allowance for individuals with adjusted income of over £150,000. However, on 6th April 2020, adjusted income was raised by £90,000 to £240,000.
The contribution amount to a pension each year and the tax relief received is limited to the annual allowance. For most people this is usually £40,000 but for some high earners this may be reduced. The allowance will be ‘tapered’ according to income, although everyone will retain an allowance of at least £4,000. This means the amount which could be tax-efficiently invested into pensions each year, could change from tax year to tax year.
New to FundsNetwork?
Find out what we offer to help you build profitable and sustainable financial businesses.
The content contained on this page is designed to give professional financial advisers technical information on retirement planning and pensions legislation and should not be relied upon.
No statements or representations made in any of the content provided on this page are legally binding on Fidelity or the recipient and no liability is accepted in connection with this material or any matter discussed. FundsNetwork cannot give advice regarding tax.