80% of higher rate tax payers failing to claim pension tax relief

An article in Saturday’s Telegraph by Jesse Beard entitled “Savers fail to claim £810m in pensions tax relief”* is a stark reminder to many that you could be missing out on unclaimed tax relief.

The Freedom of Information request by Telegraph Money shows that eight in 10 eligible higher rate tax payers are not claiming pension tax relief, while more than half of all top rate tax payers – those earning £150,000 and more – also didn’t claim what was due to them.

Currently tax relief is due at your minimal rate of income tax as an incentive to lock away money until the age of 55.

With the cost of tax relief rising by £4.4 billion in two years to £41.3 billion, questions are being asked as to whether the Chancellor will overhaul this policy in his forthcoming Budget speech on 27 October. We will be on standby to review the announcements and will keep you updated.

For practical advice on the best approach to planning for retirement and mitigating inheritance tax, contact your usual Beavis Morgan Partner or email info@beavismorgan.com.

We will review your individual situation including your property assets and provide the right advice to help you make informed decisions. If necessary, we can also introduce you to our Beavis Morgan group business Integrity 365, where an Independent Financial Adviser will assess your situation and advise on the pension protections best suited to you.

*Source: Telegraph,16 October – Savers fail to claim £810m in pensions tax relief