Personal Pension  

Decumulation and tax relief top of commission agenda

“We saw this in 2009 when Labour proposed to cut tax relief for those earning over £150,000 (later reduced to £130,000).

“It was not as simple as what were your earnings, there was a multiple stage process to work out the level of net relevant earnings over and average of three years and then a check on what contributions would count towards the special annual allowance, which excluded contributions deemed to be ‘regular’.

“Anything over the special annual allowance incurred a special annual allowance charge of 20 per cent, meaning only 20 per cent tax relief was received into the scheme. Labour’s proposals are similar to the 2009 proposals which I don’t feel any adviser is going to welcome with open arms.”