Liberty Partnership

Financial Advisor Lincolnshire: What Are The Tax Rules On A Personal Pension?

Financial advisor Lincolnshire services can clarify all your questions when it comes to personal pensions. The main piece of advice that is given regarding the personal pension is that everyone should have one to top up the state pension. But what else should you know? What about tax rules for pensions?

When it comes to your personal pension, it is not as simple as putting your savings and ‘spare money’ into a special pension pot and watching your investment hopefully grow. HM Revenue and Customs require certain limits to be put in place. As long as you stick to these limits, it is likely that you will benefit from tax relief, although it is best to check with experienced Lincolnshire financial advisors to be sure. What is tax relief on a personal pension? It’s the amount of money you can pay into a pension before you are taxed on it. HMRC will allow you to put any amount you want to into your pension scheme, but their limits are in place to show you when you will start paying tax on what are technically savings. Currently, that limit is set at £2,880 per year. There is also an annual allowance to take into account. If all the payments into your pension plan total more than £40,000, you will need to pay tax on the extra. However, bear in mind that if your income is over £150,000, you may find that your annual allowance is reduced, and again this is where the right financial advisor Cambridge can help you make the most of your money.

Pensions are essential, but there are many issues. To avoid falling foul of the tax regime, contact an independent financial advisor Lincolnshire for advice. At Liberty Partnership Ltd, we specialise in this kind of advice and more. Find out what we do at https://liberty-partnership.co.uk. Of course, our expert team are ready to discuss your options on 01778 342291 or advice@liberty-partnership.co.uk.