Tax planning | 30–40 minute read
The Additional-Rate Earner’s Guide to Pensions & Tax
At £150,000 and above you already know you pay 45%. What is less obvious is that the rules change shape at this level: the allowance that lets you shelter income in a pension starts shrinking at exactly the point it is worth most, falling from £60,000 towards £10,000 as your income rises.
From April 2027 unused pension funds come within the inheritance tax net, which changes what a pension is for at this end of the income scale. Planning built on the old assumption needs revisiting.
The guide sets out every rate that actually applies to you above £125,140, how the tapered allowance and carry forward work together, what happens if you go over, the April 2027 change, and where planning has to move beyond pensions. Eight situations are worked through in full, and it is honest about where the numbers stop being clear-cut.
Speak to a qualified financial adviser
Book your free, no-obligation review with a local adviser today.
- We'll match you with a trusted adviser based on your needs.
- You can book a session in 2 minutes at a time that suits you.
- First consultation is FREE and without obligation.
What would you like to discuss with an adviser?
Get StartedHear from clients of trusted advisers
“He is informative, always prepared and very transparent. All our questions have always been promptly and thoroughly answered. Our experience has been extremely positive and we would recommend him highly.”
“Michael is personable and highly responsive and has built a trusted relationship which has been instrumental in building confidence in our long-term finances and foundations for the future.”
“He provides a "Rolls Royce" level of service and support which leaves me feeling informed without being overwhelmed. I am confident that my pension is in safe hands.”
“I've worked with Dan for a number of years, all that time he's been fantastic. He's always available when I want to talk and the advice he's provided has been very tailored to my family's needs. I'd thoroughly recommend him to anyone looking for an adviser.”
“Dan has helped me significantly improve my investment returns by changing my allocation and making sure I'm using all my various tax-reliefs. The effect has been massive and I would have never done it myself.”
These testimonials are from current clients of advisers in the Trusted Advisor network. No compensation (cash or otherwise) was provided in exchange for these testimonials. Trusted Advisor does not have any material conflict of interest with the persons giving these testimonials.