{"id":20048,"date":"2020-04-08T11:18:39","date_gmt":"2020-04-08T11:18:39","guid":{"rendered":"https:\/\/smh.group\/?p=20048"},"modified":"2023-02-15T13:43:53","modified_gmt":"2023-02-15T13:43:53","slug":"a-change-to-the-annual-allowance-taper","status":"publish","type":"post","link":"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/","title":{"rendered":"A change to the annual allowance taper"},"content":{"rendered":"\n

One of the more controversial pension tax\nrules was slightly reformed in the Budget. <\/strong><\/strong><\/p>\n\n\n\n

The annual allowance effectively sets your tax\nefficient limit for the total amount of pension contributions that you and your\nemployer can make in a tax year. If the limit is exceeded, then you essentially\nreceive no tax relief on the excess. That can result in a large employer\ncontribution landing the employee with a tax bill.<\/p>\n\n\n\n

The annual allowance was originally introduced at the\nlevel of \u00a3215,000 in 2006, then rose to \u00a3255,000 in 2010\/11, before being cut\nto \u00a350,000 in 2011\/12. The reductions were meant to limit the cost of tax\nrelief, but in 2014\/15 a further reduction was made to \u00a340,000 and tapering was\nintroduced for high earners from 2016\/17. The taper process meant that for the\nhighest earners, the annual allowance was reduced to a minimum of \u00a310,000.<\/p>\n\n\n\n

As time\nhas passed, the net cast by tapering rules has captured a growing number of\npeople. Among those have been NHS consultants and GPs, whose NHS pension scheme\nhas generous benefits and thus high (but notional) contributions. As a\nconsequence, some senior NHS staff have turned down additional work, refused\npromotion or even opted for early retirement. <\/p>\n\n\n\n

The Chancellor addressed the issue in his Budget by increasing both the thresholds relevant to taper by \u00a390,000. In 2020\/21, nobody with total income of up to \u00a3200,000 (after<\/em> deducting personally made pension contributions) will be subject to the tapering rules. However, there are some losers from the Budget<\/a><\/span><\/strong> changes, as the minimum annual allowance has been cut to just \u00a34,000 for the highest earners.<\/p>\n\n\n\n

There had been rumours of more radical changes to pension taxation, such as limiting tax relief on contributions to basic rate only. These might still appear in the Budget due in Autumn. <\/p>\n\n\n\n

In the interim, if you have been affected previously by taper relief, you may now be able to increase your pension contributions<\/a><\/span><\/strong>. Drop us a line on 0114 266 4432<\/strong> or info@smhca.co.uk<\/a><\/span><\/strong> if you would like to run anything past us.<\/p>\n\n\n\n

The value of your\ninvestment can go down as well as up and you may not get back the full amount\nyou invested. <\/em><\/em><\/h6>\n\n\n\n
Past performance\nis not a reliable indicator of future performance.<\/em> <\/em><\/h6>\n\n\n\n
Investing in\nshares should be regarded as a long-term investment and should fit in with your\noverall attitude to risk and financial circumstances.<\/em><\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

One of the more controversial pension tax rules was slightly reformed in the Budget. <\/p>\n","protected":false},"author":4,"featured_media":16744,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[16],"tags":[350,465,516,245,515,24,19,74],"class_list":["post-20048","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-services","tag-annual-allowance","tag-budget-2020","tag-high-earners","tag-pension-contributions","tag-pension-tax","tag-pensions","tag-tax","tag-tax-relief"],"acf":[],"yoast_head":"\nA change to the annual allowance taper - SMH Group<\/title>\n<meta name=\"description\" content=\"One of the more controversial pension tax rules was slightly reformed in the Budget.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A change to the annual allowance taper - SMH Group\" \/>\n<meta property=\"og:description\" content=\"One of the more controversial pension tax rules was slightly reformed in the Budget.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/\" \/>\n<meta property=\"og:site_name\" content=\"SMH Group\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-08T11:18:39+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-02-15T13:43:53+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2018\/09\/Taxation-FI.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"585\" \/>\n\t<meta property=\"og:image:height\" content=\"250\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Brendan Hall\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Brendan Hall\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/\"},\"author\":{\"name\":\"Brendan Hall\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e\"},\"headline\":\"A change to the annual allowance taper\",\"datePublished\":\"2020-04-08T11:18:39+00:00\",\"dateModified\":\"2023-02-15T13:43:53+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/\"},\"wordCount\":391,\"image\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2018\/09\/Taxation-FI.jpg\",\"keywords\":[\"annual allowance\",\"Budget 2020\",\"high earners\",\"pension contributions\",\"pension tax\",\"Pensions\",\"tax\",\"tax relief\"],\"articleSection\":[\"SMH Financial Services\"],\"inLanguage\":\"en-GB\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/\",\"url\":\"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/\",\"name\":\"A change to the annual allowance taper - SMH Group\",\"isPartOf\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2018\/09\/Taxation-FI.jpg\",\"datePublished\":\"2020-04-08T11:18:39+00:00\",\"dateModified\":\"2023-02-15T13:43:53+00:00\",\"author\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e\"},\"description\":\"One of the more controversial pension tax rules was slightly reformed in the Budget.\",\"breadcrumb\":{\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/#primaryimage\",\"url\":\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2018\/09\/Taxation-FI.jpg\",\"contentUrl\":\"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2018\/09\/Taxation-FI.jpg\",\"width\":585,\"height\":250,\"caption\":\"Taxation Planning\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/devstagesite.co.uk\/smhgroup\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"A change to the annual allowance taper\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#website\",\"url\":\"https:\/\/devstagesite.co.uk\/smhgroup\/\",\"name\":\"SMH Group\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/devstagesite.co.uk\/smhgroup\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e\",\"name\":\"Brendan Hall\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/fe3e3bb96786e02b14d97d1c006fde60e4080a2841fd919bafa62c4cc1c65688?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/fe3e3bb96786e02b14d97d1c006fde60e4080a2841fd919bafa62c4cc1c65688?s=96&d=mm&r=g\",\"caption\":\"Brendan Hall\"},\"url\":\"https:\/\/devstagesite.co.uk\/smhgroup\/author\/brendan-hall\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"A change to the annual allowance taper - SMH Group","description":"One of the more controversial pension tax rules was slightly reformed in the Budget.","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_GB","og_type":"article","og_title":"A change to the annual allowance taper - SMH Group","og_description":"One of the more controversial pension tax rules was slightly reformed in the Budget.","og_url":"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/","og_site_name":"SMH Group","article_published_time":"2020-04-08T11:18:39+00:00","article_modified_time":"2023-02-15T13:43:53+00:00","og_image":[{"width":585,"height":250,"url":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2018\/09\/Taxation-FI.jpg","type":"image\/jpeg"}],"author":"Brendan Hall","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Brendan Hall","Estimated reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/#article","isPartOf":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/"},"author":{"name":"Brendan Hall","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e"},"headline":"A change to the annual allowance taper","datePublished":"2020-04-08T11:18:39+00:00","dateModified":"2023-02-15T13:43:53+00:00","mainEntityOfPage":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/"},"wordCount":391,"image":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/#primaryimage"},"thumbnailUrl":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2018\/09\/Taxation-FI.jpg","keywords":["annual allowance","Budget 2020","high earners","pension contributions","pension tax","Pensions","tax","tax relief"],"articleSection":["SMH Financial Services"],"inLanguage":"en-GB"},{"@type":"WebPage","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/","url":"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/","name":"A change to the annual allowance taper - SMH Group","isPartOf":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#website"},"primaryImageOfPage":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/#primaryimage"},"image":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/#primaryimage"},"thumbnailUrl":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2018\/09\/Taxation-FI.jpg","datePublished":"2020-04-08T11:18:39+00:00","dateModified":"2023-02-15T13:43:53+00:00","author":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e"},"description":"One of the more controversial pension tax rules was slightly reformed in the Budget.","breadcrumb":{"@id":"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/#primaryimage","url":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2018\/09\/Taxation-FI.jpg","contentUrl":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-content\/uploads\/2018\/09\/Taxation-FI.jpg","width":585,"height":250,"caption":"Taxation Planning"},{"@type":"BreadcrumbList","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/a-change-to-the-annual-allowance-taper\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/devstagesite.co.uk\/smhgroup\/"},{"@type":"ListItem","position":2,"name":"A change to the annual allowance taper"}]},{"@type":"WebSite","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#website","url":"https:\/\/devstagesite.co.uk\/smhgroup\/","name":"SMH Group","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/devstagesite.co.uk\/smhgroup\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Person","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/637129b7464f960037f1b676f625570e","name":"Brendan Hall","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/devstagesite.co.uk\/smhgroup\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/fe3e3bb96786e02b14d97d1c006fde60e4080a2841fd919bafa62c4cc1c65688?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/fe3e3bb96786e02b14d97d1c006fde60e4080a2841fd919bafa62c4cc1c65688?s=96&d=mm&r=g","caption":"Brendan Hall"},"url":"https:\/\/devstagesite.co.uk\/smhgroup\/author\/brendan-hall\/"}]}},"_links":{"self":[{"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/posts\/20048","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/comments?post=20048"}],"version-history":[{"count":1,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/posts\/20048\/revisions"}],"predecessor-version":[{"id":24188,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/posts\/20048\/revisions\/24188"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/media\/16744"}],"wp:attachment":[{"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/media?parent=20048"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/categories?post=20048"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/devstagesite.co.uk\/smhgroup\/wp-json\/wp\/v2\/tags?post=20048"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}