Hart Brown Pension advice - Surrey montage

Pension & Retirement Planning

We offer a range of services in respect of pensions. These are broadly broken down into two categories:

For further information please contact  Paul Tobias

 

The tax advantages of a pension

The government encourages you to save towards your pension by giving you "tax relief" on the money you pay in.

If you are a basic rate taxpayer then you will pay 22% tax - meaning that for every pound you earn, you owe the government 22p.

But, if you put that pound into your pension the government will refund that 22p, meaning you pay less tax overall.

For example, if you wanted £100 to be added to your pension scheme, you would only need to actually pay £78.00.

This is because your pension scheme would ask for £22.00 from HM Revenue & Customs (HMRC) - your share of tax relief which would then be invested by the scheme on your behalf.

 

What happens if you pay a higher rate of tax?

If you are on the higher rate of tax of 40%, you will still get 40% tax relief for any money put into your pension. But the way that the money is given back is different.

The first 22% is claimed back from the Inland Revenue by your pension scheme in the same way as for a lower rate taxpayer

It is then up to you to claim back the other 19%, in your annual tax return or by completing form (PP120) which is available from tax offices or may be provided by your pension scheme administrators.

 

Hart Brown Solicitors are a leading law firm throughout Surrey and in London, with offices in Cobham, Cranleigh, Godalming, Guildford, Wimbledon Village and Woking.