Those who may be affected by the reducing lifetime and annual allowances being introduced from April 2016 may face significant tax bills.
Ignorance of this won't stop them incurring a tax charge, so it is fundamental that people who may be affected are aware of this issue and understand the planning steps they will need to take to reduce this tax.
Many companies are providing those affected with financial education, and others are going a step further; also providing those impacted with access to advice.
Staff earning £150,000 or more a year are being warned that they may face ‘nasty surprises’ when the tapered annual allowance for pensions is introduced this year. Employee benefits adviser Secondsight highlighted that the provisions – part of Finance Act 2015 – could lead to unforeseen tax bills as high as £13,500. Darren Laverty, employee benefits partner at Secondsight, said: ‘Few people appreciate that the new tapered annual allowance legislation, which takes effect on 6 April, could lead to some nasty surprises for anyone with an income or adjusted income of £150,000 plus.’