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Pointon York stressing carry-forward urgency

Advisers should act now to ensure self-invested personal pension clients maximise contributions ahead of cuts in tax relief, according to pension specialist Pointon York.

Government reforms which take effect from April 6, 2001 mean Sipp holders and personal pension savers can no longer carry forward unused tax relief.

Clients could potentially lose out on making additional tax-deductible contributions which could be as large as their current year&#39s salary up to the earnings cap.

The tax change could also lead to administrative nightmares and delays at life offices as millions of pension savers act before carry forward is axed.

This fear is leading Pointon York to urge IFAs to speak to their clients as a matter of urgency. It says the reforms are a compelling reason for Sipp holders to act now to claim their unused tax relief and maximise pension contributions.

Head of technical and product development Ian Bell says: “IFAs are aware of this, as we are, but with pressure from other areas may not have got around to speaking to clients about it. The danger is that if it is left until February, it is likely the industry will not be able to deal with everyone&#39s request ahead of the deadline.”

Managing director Christine Hallett says: “Individuals with unused tax relief must act quickly to take advantage of past tax relief which will be lost. This could greatly enhance retirement provision.”

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