98% Tax Relief for Pension Contributions!

Does that sound too good to be true? Well it isn’t. Provided your circumstances fit the bill you could achieve a £15,000 contribution to your pension fund, all bar £300 of which is funded by the government. That must be worth a closer look!!

There are of course criteria that need to be met to qualify, but broadly in order to benefit you need to be entitled to claim tax credits and have income per family of less than £50,000.

Obviously you need to be able to fund the initial pension contribution, either through savings or even a loan, but this could be replenished or paid off once the increased tax credit payments come through.

If you do not want to make pension contributions a similar result can be achieved for the self employed by investing in capital items, especially those that attract 100% capital allowances such as low emission cars. And from 6 April 2008 all businesses will be able to claim 100% allowances on the first £50,000 of capital investment per year.

Whatever your circumstances if you are claiming tax credits significant percentage levels of tax relief can be achieved on investments such as pensions. If you are interested in exploring how you can take advantage of these phenomenal reliefs, even maybe achieving full 98% tax relief, then you should contact us without delay.