Request that the Pension Charge is paid by your fund by 31st July

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RWBpension_charge

The Pension Annual Allowance tax charge depends on the individual’s marginal rate of tax. The deadline to pay HMRC is 31st July 2019 for the 2018/19 tax year. Read on to learn how the rates are calculated. 

The rates

Where their income exceeds £150,000 it would be at 45%. Thus if the pension input for 2018/19 Was £40,000 and the limit is tapered to £10,000 the excess of £30,000 would incur a £13,500 tax bill on top of their normal tax liability. 

You can ask your pension provider to pay HMRC out of your pension fund if you’ve gone over your annual allowance and the additional tax is more than £2,000.

We can help you with your tax planning...

Our team of tax experts can help you maximise your tax efficiency. Contact us today on 0115 964 8888 or email enquiries@rwbca.co.uk.

The views provided in this article are for general information purposes only. Nothing in this article represents advice of any nature whatsoever. Accordingly, RWB CA Limited does not accept any liability or responsibility for the information contained in this article or any decision or other action that may be taken in reliance upon the information contained within it. RWB CA Limited accepts no responsibility for any errors of fact or opinion and assumes no obligation to provide you with any changes to its assumptions.  

Tags: Financial planning Taxation Tax advice Tax planning Property tax Tax Tax exemptions Private residence relief CGT Lettings relief

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