This guide outlines the key pension contribution limits and tax reliefs for the 2024/25 tax year, emphasizing the unchanged Annual Allowance of £60,000 and the abolition of the Lifetime Allowance.
The UK government has abolished the Lifetime Allowance for pensions starting in the 2024/25 tax year, allowing individuals to save more without tax penalties while also necessitating careful retirement planning.
A Self-Invested Personal Pension (SIPP) provides UK individuals with greater control, tax advantages, and flexibility in retirement planning through diverse investment choices and withdrawal options.
This article explains the Pension Annual Allowance tapering for high earners, detailing its impact on contributions, tax relief, and strategies to optimize retirement savings despite reduced allowances.
As the UK tax year ends on April 5, taxpayers should review their finances, maximise allowances, and prepare for tax filing to ensure a smooth transition into the new tax year.
