Pensions Savings - The Tax Issues

In 2023, a plethora of changes expanded the taxation benefits of pension savings, a move which surprised many after years of effective reductions combined with perennial speculation about the retention of higher and additional tax relief.  The effect of this on the Exchequer is huge reaching a gross pension income tax and NICs relief cost of 68.8 billion in 2021/22, a COVID year! 

The recent changes will further increase this cost and one wonders whether some elements may have a limited shelf life following a General Election.  

The course examines the tax rules and any developments involved in providing for and accessing a pension.   

Content  

Pension contributions and tax relief  

• Mechanics 
• The significance of net relevant earnings  

 Employer (Workplace) pensions  

• Which tax relief method ? 
• Common mistakes 
• Auto enrolment developments and points of interest   

The Annual allowance (AA)   

• Tapered AA   
• The excess charge  

Understanding the Lifetime allowance   

• Protection mechanisms and impact 
• 2023/24 developments 
• 2024/25 – LTA abolition and replacement provisions  

Accessing money purchase pension funds  

• Income and lump sums including small pension pots  
• Money purchase AA rules  
• Reporting  

The taxation of death benefits  

• The interaction with IHT and estate planning  

The state pension  

• How the  old and new state pension operate  

Pensions and divorce  

Depending on announcements in Budget 2024 and following an expected 2024 General Election the content may be updated for new developments