View more on these topics

Dennehy warns of possible higher rate pension tax relief axe

Dennehy Weller & Co has warned clients that higher rate tax relief on pension contributions could be abolished in next week’s Budget.

The firm has written to clients suggesting they bring forward planned contributions to ensure they receive the 40 per cent tax relief currently available.

Money Marketing reported in March that the Government was investigating ways to fund an increase to the Isa limit and that changes to tax relief on pensions were understood to be on the table.

Managing director Brian Dennehy says: “There is no doubt that the Government, and its finances, are under huge pressure.
Gordon Brown is going to have to introduce unpopular measures and it is difficult to see how higher rate tax relief on pension contributions, a perk for the rich, can be sustained. There is nothing to lose in bring forward contributions and a significant chunk of tax relief can be locked-in.”

Killik & Co has written similar letters to its clients.

The Liberal Democrats support axing higher rate tax relief while the work and pension committee called for a review of relief bands in 2006. It is estimated the Treasury could save around £2.3bn from the move.

Hargreaves Lansdown pensions analyst Laith Khalaf says: “I do not see why you would need to rush. In the unlikely event that they do scrap the relief I doubt it would apply until next tax year. If they bring it in this tax year, anyone who has made contributions since April 6, will not get higher rate relief anyway.”


To be and not to be – Multi asset investing with conviction

At Pictet Asset Management we believe active management of asset allocation is the most important generator of returns. What is not to be in our portfolio is just as important as what is to be because good performance is determined as much by the assets you avoid as by those you hold. The FP Pictet Multi Asset Portfolio managers are not wedded to any particular […]


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