Originally Posted by
Bob Viking
I hope you’re right. If true, this is a significant good news story. Although, maybe a little late for some.
BV
Hmm - not sure I am. Reading into is a bit more and along with the current guidance on HMRC pages (
https://www.gov.uk/tax-on-your-priva...nual-allowance), I think all he has done is increased the amount you can earn before the £40k limit gets reduced.
So previously, we all have £40K annual allowance BUT those then earning over £110K would have that £40K allowance reduced accordingly.
I think all he has done is raised that limit?
Therefore, we are all still limited to the £40K annual pension allowance but now only those earning over £200K will get the allowance reduced.
If so, we are still going to be hit with additional tax bill when NET earnings hit about £65K (using the 63% of earnings used for MOD pension 'contribution' figure).
Bummer.