A race to beat tax

It’s not long before the new tax year of 2018-19, but Susan Hutter says make sure you don’t miss out with some useful financial planning before the current tax year closes.

Pension planning

From 6 April 2018, the annual allowance, which is effectively the maximum contribution payable into a pension scheme, is £40,000.

The annual allowance up to 5 April is also £40,000, including effective contributions into the NHS Superannuation Scheme.

The £40,000 will be reduced for every £1 of income over £150,000 to a minimum of £10,000 annual allowance. It is possible to increase the annual allowance for the tax year of the contribution by utilising the unused allowance from the preceding three years.