Reason Eight to pay into a Pension Plan before April 2015

Recover personal allowances:

·         Pension contributions reduce an individual’s taxable income.  So they are a great way to reinstate the personal allowance.

·         For a higher rate tax-payer with taxable income of between £100,000 and £120,000 an individual contribution that reduces taxable income to £100,000 would achieve an effective rate of tax relief of 60%.  For higher incomes, or larger contributions, the effective rate will fall somewhere between 40% and 60%.