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Pension contributions can benefit low-earning taxpayers
KEY POINTS
- The 0% savings band and forthcoming £1 000 exemption for interest should benefit those with income from savings.
- Halifax statistics indicate average bank deposits of £17 000 so who will really benefit from the savings rate and the new exemption?
- The non-taxpayer can benefit from the 20% tax relief on pension contributions.
- New flexible pension rules may help those on low incomes achieve a better return.
- Is there a danger that HMRC may not register or will deregister pension plans that pay out quickly?
In All change... Anita Monteith points out that although pensions have been hogging the limelight there are some different savings schemes that offer “an increasingly interesting way of putting money aside for the future”.
As Anita explained from April...
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