Are you contributing to a personal pension and are you wishing to claim tax relief under pension carry-back rules, may be even carry-forward rules?

When the new Pensions Simplification Rules come into force on April 6th 2006, the ability to carry-back pension contributions to the previous tax year will be lost forever. For those individuals with tax payment due 31 January 2006, (in respect of their earnings in the 2004-05 tax year), this is especially relevant. Additionally, if you are contributing to a pension taken out prior to July 1988, you may have an opportunity to carry-forward. This would allow you to use any unused contribution relief for up to the last seven tax years.

Stuart Burkin, Independent Financial Adviser for Burgis & Bullock said: “For example, if you are aged 55, have a salary of £30K and, lets say, have been paying £100 per month into your pension for the last six years, you could contribute an amount equal to this year’s salary and receive income tax relief on the whole contribution.

“The 31 January this year will be your last ever opportunity to claim carry-back and carry-forward allowances, offering valuable tax relief from the previous and current financial years. The implications of this change will be especially felt by those who pay tax at the higher rate of 40% as the extra tax relief continues to make pensions one of the most tax efficient forms of retirement planning.

It really is a case of use it or lose it - forever!"

In order to gain a tax reduction, it is imperative for all those who wish to take advantage of this extremely valuable opportunity to contact Burgis & Bullock Financial Services Limited as soon as you can as it will be necessary to recalculate your revenue return.

If you would like some advice on how to claim back your relief, please contact Stuart Burkin on 01926 451000.

Burgis & Bullock Financial Services Limited  is authorised and regulated by the Financial Services Authority