Pensions and the Emergency Budget - 2010-06-07
Pensions and the Emergency Budget 22nd June 2010
A message from Brendan McGrath, Minotaur wealth Management
On 17th May the new Chancellor George Osborne announced there will be an emergency Budget on 22 June. The focus of this Budget will almost certainly be on the cuts to government spending and services.
There is also a possibility that the 40% tax relief on pension contributions could be affected, or even withdrawn. The Liberal Democrats have been calling for tax relief on pension contributions to be brought down to the basic rate of 20% for all taxpayers, irrespective of income tax band, as they believe this could raise £5.5 billion.
People with earnings between £43,875 and £149,999 in the 2010/11 tax year fall into the higher rate tax bracket and if tax relief on pension contributions for higher rate taxpayers is a targeted by the emergency Budget, it means around 3.13 million people could be affected. So if this is relevant to you and you would like further details, please contact me at the address below and I will let you know how the Budget affects you personally.
If you are a higher rate tax payer and intend to make a contribution this tax year anyway, it may be prudent to bring this year’s contribution forward and pay it now, before any announcements are made by the emergency Budget. If so, please contact Brendan McGrath and I will arrange to get in touch.
Brendan McGrath Cert PFS
Minotaur Wealth management
Sherborne House
119, Cannon St
London
EC4N 5AT
DDI: 0845 013 6540
Mobile: 07771 541486
Direct Fax: 0844 579 3701
Office Fax: 0845 013 7101
E-Mail: brendan.mcgrath@minotaurwm.com
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