Pension contributions can reduce your tax liability, but restrictions on contributions exist, especially for high-income earners.
Receiving tax relief on pension contributions
The government rewards people for contributing to their pension – and their future finances – by granting tax relief on pension contributions. Some tax you would normally owe HMRC will be redirected to your pension.
You’ll receive 20%, 40% or 45% tax relief depending on your taxpayer status. For example, adding £100 to your pension will only cost a basic rate taxpayer (20%) £80 and the government will top up the remaining £20 (the rules are different in Scotland).
The amount contributed to your pension can benefit from tax relief, providing it doesn’t exceed an annual allowance. If you stay within the annual allowance within a tax year, you can receive tax relief on £60,000 or 100% of your income, whichever is lower.
What is the annual allowance?
The pension annual allowance is an amount of money you can contribute to your defined contributions pension – and the amount of benefits you can build within the scheme for tax relief. The current annual allowance is set at £60,000* or 100% of your income whichever is lower and includes both you and your employer’s contributions across all of your pensions except your State Pension.
There is a reduced annual allowance for high-income earners. We explain this further below.
What happens if I exceed the allowance?
If you exceed the £60,000* annual allowance, you will be subject to a tax charge called an annual allowance charge. There are strategies to mitigate this charge using unused portions of annual allowance from previous tax years.
The Tapered Annual Allowance (TAA)?
The Tapered Annual Allowance (TAA) is a reduced annual allowance for high-income individuals. These individuals’ allowance will be reduced by £1 for every £2 that their adjusted income exceeds £260,000, to a minimum tapered allowance of £10,000.
*Tax year 2026/2027
TAXATION ADVICE IS NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
TAX TREATMENT VARIES ACCORDING TO INDIVIDUAL CIRCUMSTANCES AND IS SUBJECT TO CHANGE.
MEET OUR Director/Wealth Manager
Aman Mashiana
Aman Mashiana is a strategic wealth management professional with more than 15 years’ experience building and leading advisory practices, managing substantial client portfolios, and delivering sustainable revenue growth in competitive financial markets.
The best solutions often start with the right questions!
FAQ'S
Not at all. We believe great financial planning should be accessible. Whether you are just starting to build your assets, navigating a major life transition, or managing multi-generational wealth, we tailor our advice completely to your current situation and future goals.
Our initial conversation is entirely exploratory and comes at no cost to you. It’s simply a chance to get to know each other. We’ll discuss your current financial picture, what you hope to achieve, and how we might be able to help. You won't need to sign anything or make any big decisions on day one.
We want to make managing your wealth as convenient as possible. We are happy to meet face-to-face at our office, or we can host a secure virtual meeting via video call (such as Microsoft Teams or Zoom) if that fits better into your busy schedule.
We believe in absolute fee transparency, meaning we agree on all costs upfront before any work begins. Depending on the complexity of your needs, our fees may be structured as a transparent percentage of the assets we manage, a flat fixed fee for a specific project, or an hourly rate. There are never any hidden costs or surprise bills.
Absolutely. It's incredibly common to lose track of old workplace pensions over time. We can help you trace your scattered accounts, review their current performance and fees, and—if it makes financial sense—consolidate them into a single, high-performing, and easy-to-manage retirement plan.
We don't believe in cookie-cutter portfolios. We take the time to deeply understand your time horizon, your specific life goals, and your personal comfort level with market volatility. From there, we build a diversified portfolio designed to grow your wealth steadily while keeping your risk well within your comfort zone.
Yes. Making money on investments is only half the battle; keeping it tax-efficient is just as important. We actively structure your wealth to minimize Income Tax, Capital Gains Tax, and Inheritance Tax, ensuring more of your hard-earned money stays with you and your loved ones.
Tax planning, estate planning & Inheritance Tax planning are not regulated by the Financial Conduct Authority.
Not at all. We believe great financial planning should be accessible. Whether you are just starting to build your assets, navigating a major life transition, or managing multi-generational wealth, we tailor our advice completely to your current situation and future goals.
Our initial conversation is entirely exploratory and comes at no cost to you. It’s simply a chance to get to know each other. We’ll discuss your current financial picture, what you hope to achieve, and how we might be able to help. You won't need to sign anything or make any big decisions on day one.
We want to make managing your wealth as convenient as possible. We are happy to meet face-to-face at our office, or we can host a secure virtual meeting via video call (such as Microsoft Teams or Zoom) if that fits better into your busy schedule.
We believe in absolute fee transparency, meaning we agree on all costs upfront before any work begins. Depending on the complexity of your needs, our fees may be structured as a transparent percentage of the assets we manage, a flat fixed fee for a specific project, or an hourly rate. There are never any hidden costs or surprise bills.
Absolutely. It's incredibly common to lose track of old workplace pensions over time. We can help you trace your scattered accounts, review their current performance and fees, and—if it makes financial sense—consolidate them into a single, high-performing, and easy-to-manage retirement plan.
We don't believe in cookie-cutter portfolios. We take the time to deeply understand your time horizon, your specific life goals, and your personal comfort level with market volatility. From there, we build a diversified portfolio designed to grow your wealth steadily while keeping your risk well within your comfort zone.
Yes. Making money on investments is only half the battle; keeping it tax-efficient is just as important. We actively structure your wealth to minimize Income Tax, Capital Gains Tax, and Inheritance Tax, ensuring more of your hard-earned money stays with you and your loved ones.
Tax planning, estate planning & Inheritance Tax planning are not regulated by the Financial Conduct Authority.
