Rishi Sunak ‘highly likely’ to reduce tax relief on pension contributions in March budget | Personal Finance | Finance


Additionally, people will usually pay tax on contributions if their pension pots are worth more than the lifetime allowance, which is currently sitting at £1,073,100.

To find out if a person has gone above the lifetime allowance, they should call their pension provider(s).

When a person does go over their lifetime allowance, they should get a statement from their provider telling them how much tax will be owed.

The rates paid will depend on how the pension money is paid to the holder, with 55 percent being levied on lump sum and 25 percent being charged on any other kinds of withdrawals.

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