The watchword should be ‘sooner rather than later’ for those who have spare cash to invest in a SIPP or other form of personal pension following today’s emergency budget, says Kate Davidson at IFA Allenbridge.
The widely rumoured limitation of pensions contributions tax relief to the basic 20 per cent rate did not appear.
But the Chancellor's statement that he has listened to concerns that “the previous Government's policy to reduce pension tax relief for people on high incomes…would introduce complexity,” does not necessarily mean that the threat of less tax relief for higher rate taxpayers has gone away.
The Chancellor also said that he had to protect the £3.5 billion of revenues which the previous policy (of restricting tax relief to the basic rate) was to raise from high income earners and that he would work with the pensions industry to find other ways of raising the same revenue.
"One way or another, it seems likely that tax relief on SIPP and other personal pension contributions will be under attack. So the safest solution is to contribute now when you can be sure of the tax relief. Any new annual allowance scheme is unlikely to be as generous as the present system," adds Kate Davidson at Mayfair-based discount IFA Allenbridge.
Media enquiries
Contact Details:
Kate Davidson, Public Relations and Media Manager at Allenbridge Group PLC.
Mob: +44 (0)78 1462 4161
Tel: +44 (0)20 7409 1111
Kate.davidson@allenbridge.co.uk
http://www.allenbridge.co.uk/
Anthony Yadgaroff, Managing Director at Allenbridge Group PLC.
Tel: +44 (0)20 7409 1111
Anthony.yadgaroff@allenbridge.co.uk
Notes to Editors:
Allenbridge Group PLC is a rare beast in the investment jungle, a Mayfair-based discount broker that also advises large FTSE corporate pension funds and global banks. Founded in 1985, it carries out specialist research and consultancy, analysing investment manager performance across a wide range of funds: Unit Trusts, Investment Trusts, Venture Capital Trusts, Enterprise Investment Schemes, Charities, Hedge Funds, Funds of Hedge Funds and institutional Pension Funds.
In addition to providing comprehensive advice and strategic investment consultancy to leading institutions, Allenbridge also offers monitoring services, valuations and its specialised AllenbridgeCare service to individual investors on investment products and tax-shelter vehicles.
Allenbridge’s private investor division serves over 14,000 clients; retail and institutional funds under advisement exceed £25 billion.