What is the Annual Allowance?
The government spends billions of pounds every year on pensions tax relief and, therefore, places a cap on the amount you can save every year, upon which you can earn relief.
This cap is known as the ‘annual allowance’, which is £40,000 in the 2021-22 tax year, or 100% of your income if you earn less than £40,000.
Your annual allowance is made up of all contributions to your pension made by you, your employer and any third party (including pension tax relief).
How can you support your clients and avoid making costly mistakes?
Read Peter Lawlor’s article in the T-CNews as he examines some of the issues surrounding contributions and highlights the information required to enable an accurate calculation to take place.
Annual Allowance – It’s that time of year
PTS Knowledge Hub
The FCA want to see higher standards of advice and believe this can be achieved if PTS’s improve their levels of knowledge and understanding through formal training. The goal of our PTS Knowledge Hub is to support those firms and individuals who are continuing to provide advice on defined benefit pensions in what is an increasingly challenging area when it comes to rules, regulations and compliance.
Click here to view our PTS Knowledge Hub resources or to arrange a FREE demo
