Perplexing pensions

Your pension questions, especially about the erosion of your benefits due to tax changes, are keeping accountants busy. Ian Tongue explores the impact of major changes to the taxing of your pension and shows what to consider now.

Think of your pension as a bucket. HM Revenue and Customs (HMRC) does not want you to fill it too fast because you get tax relief on the flow in. And when it gets full, the taxman wants some of the tax relief back.