Tax Relief

Rishi Sunak: Within the 2021 funds | “Enhancements” in pension tax relief could possibly be in sight Private Finance | Funds

One such change is the retirement tax relief, which is useful for many retirement planners but could potentially be changed.

Tom Selby, Senior Analyst at AJ Bell, commented on the possible choices the Chancellor could make under his upcoming budget.

He said: “An easy way to get tax revenue out of the £ 40 billion pension pot could be to optimize the existing annual allowance, which is currently at £ 40,000.

“If that were reduced to £ 30,000 or even £ 20,000 – in line with the flat ISA allowance – the Registrar could save some money while leaving the majority unaffected by retirement options.

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