The last few weeks have been busy with last minute pension contributions for clients before the end of the tax year.
The tax relief on pension contributions is still a major incentive for many people when they are looking at where to save their money.
Before the Brexit referendum of 2016 the government had mulled over turning the tax relief system of pensions on its head from the current system where contributions receive tax relief, investment returns are tax free, but the proceeds of pension savings are taxable, compared to the ISA – Style system. Under the ISA system contributions do not receive any tax relief but the investment returns are exempt from tax, and the proceeds of the investment are tax free.
Based on the government being all consumed with Brexit any planning around changes to the tax relief of pensions has been scrapped for the time being and thus if you are still building your wealth this is a positive – there you go – I’ve found a positive to Brexit!!