View more on these topics

£150K earners on ‘a cliff edge’

People who earn £150,000 or more will be hit with a “catastrophic” drop in pension tax relief in the next two years.

Hargreaves Lansdown says that transitional rules between now and 2011 will lead to a massive discrepancy between higher-rate taxpayers earning under £149,999 and those earning £150,000 or more.

Under the interim rules, those earning £150,000 or more will only get 40 per cent tax relief on £20,000 while those earning less will get 40 per cent tax relief on the entire contribution.

Those earning £149,999 who put £100,000 into their pension will get 40 per cent tax relief. But those earning £150,000 and putting £100,000 into a pension would only get 40 per cent tax relief on £20,000 and 20 per cent relief on the rest of the contribution, losing out on £18,000.

Hargreaves Lansdown pensions analyst Laith Khalaf says: “There is a massive cliff edge once you reach £150,000. I would think that anyone who is in this position will be thinking about leaving their pension scheme. It means that there is a catastrophic drop-off in pension savings investing potential for people in this band.”


Manager focus: David Gait

According to First State, sustainable investment has always been an integral part of the philosophy and stockpicking process of its Asia Pacific and emerging markets team. However, focusing on environmental, social and governance aspects has not meant compromising returns.The First State Asia Pacific Sustainability fund, for example, has outperformed its peer group. According to Trustnet, […]

Colombia requests IMF credit line

Colombia has become the third country to request a credit line from the International Monetary Fund (IMF) under the Flexible Credit Line (FCL) facility, asking for $10.4 billion (£7.14 billion), according to the fund.Mexico has received approval for a $47 billion credit line, while the IMF is considering an application from Poland for a $20.5 […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm