Warning on pension contributions
The annual allowance on pension contributions reduces to £40,000 from the tax year 2014/15 onwards. However, this may have an impact from an earlier date.
The issue is that pension contributions are based on pension input periods. If the input period ends in 2014/15, the £40,000 limit applies. The pension input period does not have to match the tax year. This means that any pension savings for pension input periods starting before 6 April 2014 (which could be as early as 7 April 2013), but ending in tax year 2014/15, will count towards the reduced annual allowance of £40,000.
You may therefore want to check what your pension input period is and when you will start to be affected by the reduced £40,000 annual allowance.
Date: 29th May, 2013
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