Call us today

Increasing number of pension savers hit by tax charges

Get in touch today - call Kent on 01634 570 390 or Surrey on 01737 370 493

Book a FREE consultation

If you would like to get some impartial advice, simply book a free consultation and we'll get in touch with you as soon as we can.

Increasing number of pension savers hit by tax charges

An increasing number of people saving for retirement have been hit by tax charges for exceeding the amount they are allowed to put away tax-free.

In total, 26,550 people exceeded their pension allowance in 2017-18, with the overall value of excess contributions reaching £812 million and averaging £30,584 per person.

The number of people exceeding their pensions allowance has seen a steep increase over the last decade of around 11,000 per cent, with just 230 people having done so ten years earlier.

Tax charges for exceeding the relevant pensions allowance vary between 40 and 45 per cent.

Depending on a person’s circumstances, one of three different pension allowances can apply. These are the money purchase annual allowance of just £4,000 for people who have flexibly accessed their savings, the standard £40,000 annual allowance and the tapered annual allowance for people on incomes of more than £150,000 a year.

The tapered annual allowance sees a £1 reduction in annual allowance for every £2 of income above £150,000 a year.

The figures from HM Revenue & Customs (HMRC) do not break down the proportion in which the different allowances have been exceeded.


Urgent COVID-19 Notice
Working From Home

Our first priority is the health and well-being of our team and our community. Therefore, with a heavy heart we have made the decision to temporarily work from home with immediate effect.

We are listening to the government’s daily updates, taking each day as it comes, and will reopen our offices as soon as it is safe to do so.

If you have any questions or need to discuss any issues at all please do email or call us on our usual number 01634 570 390.

The general email is

We hope everyone is keeping well and staying safe.

This website uses cookies to enhance your browsing experience... moregot it