Health Upgraders

Wherever you are with your retirement plan, don’t be swayed from considering action, it s not too late. There are however steps you can take to increase the money you’ll get when you retire.
Pensions are a highly tax-efficient way to save. If you already have a pension, now would be a good time to talk to us about making a single premium contribution to boost it, particularly as the close of tax year is speedily approaching, or starting a self invested personal pension to widen your options. You will not have to take all your pensions at the same time.
If you’re self employed, you can contribute up to 100 per cent of the value of your relevant UK salary (salary and other earnings), up to a maximum of 245,000 for the 2009/10 tax year rising to 255,000 for the tax year 2010/11. Investments above this yearly limit are granted but will be taxed. You can contribute into any no. of pension schemes (personal and/or company) each year.
You will receive tax relief on your contributions, so if you are a forty % tax payer a 20,000 investment would cost just 12,000. Basic rate tax relief is supplied by the government to all contributions at a rate of twenty percent.
High rate tax payers can claim up to a further 20 percent tax relief via their tax return. If you earn more than 150,000 you will see the tax relief on your pensions cut from April 2011, tapering from 40 to 20 % for those making more than 180,000. Wage Earners below 130,000 will not be impacted.

There s a lifetime limit on the size of your pension pot, which is presently £1.75m in the tax year 2009/10 but rises to £1.8m for the 2010/11 tax yr. If your investment fund tops this, you’ll incur tax charges of 55 per cent if the excess benefits are taken as a lump sum and 25 percent if taken as income. The income will then be subject to income tax at your highest rate.
From 6 April 2010, the age at which you can start taking your pension rises to 55. If you need to, pension benefits can be postponed until you are up to 75 years old. You might still be able to take your pension prior to age 55 in certain circumstances, for example if you retire through ill-health.

The department of pensions website is a useful reference .

The value of investments and the income from them can go down as well as up and you may not get back your original investment. Past performance is not an indication of future performance. Tax benefits may vary as a result of statutory change and their value will depend on individual circumstances. Thresholds, percentage rates and tax legislation may change in subsequent finance acts.
Consilium Asset Management is based in South Gloucestershire. Why not visit Chipping Sodbury and come and see us.