Pension contributions could be restricted – Autumn State

The Autumn Statement has traditionally been used to introduce new measures effectively limiting the tax relief on pension contributions. The chancellor will deliver this year’s statement on Wednesday 23 November.

Last week, it was reported the prospects for the UK's public finances have worsened, with net borrowing in 2020 estimated to be £25bn more than forecast in the March Budget. At a cost of £34bn a year, pension tax relief could be cut to help balance the books. 

Anyone planning a large pension contribution may be wise to consider acting now. We do not know if any changes will be announced or when any change would take effect, but in the past changes have often had an immediate impact.