From 6 April 2016, high earners will see their annual allowance restricted to as low as £10,000. A high earner in this context is someone with income greater than £150,000 who will suffer a £1 reduction in their annual allowance for every £2 of income above this threshold. The minimum allowance of £10,000 will apply to those with income of at least £210,000.
Those unable to avoid a significant reduction in their future annual allowances will have more than the usual incentive to maximise their pension contributions at the end of the tax year.
Read the details published by Scottish Widows by clicking here.
If you require further information, or would like to know how you could maximise your pension contribution before the changes, please contact one of our advisers.