News and Views

Government’s U-Turn on their U-Turn regarding Tax Free Pension Allowances

If you are over 55 and have accessed any of your pension this affects you, so read on…

In Philip Hammond’s 2016 Autumn statement he first introduced the idea that the £10,000 limit on new contributions to pensions for those who had already accessed any of their possible 25% tax free cash would be slashed by a massive 60% to just £4,000 per annum. Although these plans were confirmed in the 2017 Finance Bill, the government did a massive turnaround in April of this year once plans for the snap general election had been announced.  Other equally unpopular measures were also shelved at the same time, such as the proposed reduction of the tax free dividend allowance also by 60% from its current £5,000 per annum to just £2,000 per annum from 2018-19.

This latest “Finance Bill 2” which has been announced yesterday to be introduced in the autumn legislates for a number of policies which have already been announced and includes a number of provisions which will apply from the start of this 2017-18 tax year, including this reduction in the money purchase annual allowance to £4,000.

It is estimated that there will be many individuals who have already exceeded this amount in the first three months of this following the earlier announcement that the rate was to he held at £10,000.

To read the full article from The Professional Adviser please click here

For the full updated draft legislation of the Finance Bill (2) published on Thursday please click here

As always, please don’t hesitate to contact us if you require any further information about any of these measures.



Related articles

Accountants for Amazon Sellers
Limited Companies

Amazon Sellers – top tips to ensure your long term success

Have you ever considered selling on Amazon or eBay, setting up an eCommerce business, or a little side hustle?

If this sounds like you, it seems you are not alone.

More and more people these days are selling online to boost their income, sometimes just for a bit of fun and with no higher plans, and other times in the hopes of turning this so called side hustle into their dream job and their very first foray into entrepreneurship…

We have been receiving lots of enquiries recently about accounts and tax for Amazon sellers, so I’ve recorded a little video outlining our top tips if you are thinking about giving it a go yourself…

Read More »

Find out how we can help?

Lectus scelerisque a donec tincidunt litora per eleifend eget ut sagittis conubia pharetra scelerisque dui ultricies duis parturient auctor adipiscing.


Let’s start a conversation 

    Subscribe me for updates and news from In Accountancy