Two important dates are fast approaching for pension savers which could make a big difference to tax relief.
The deadline for filing tax returns for the year ending 5th April 2016 is on January 31st. If you made a pension contribution in that year for which you have not yet claimed the higher rate tax relief, you only have a few days left to do so. The basic rate tax relief is claimed automatically by your pension company or employer and is set at 20%. You only need to claim relief yourself if you are on the higher rate of 40%. As The Telegraph points out:
"Hundreds of millions of pounds of tax relief goes unclaimed every year because investors forget their pension contributions, or don't realise they have to claim".
Secondly, the date of the Spring budget is the 8th March. While nothing is decided yet, it may be wise to contribute as much as possible to your pension ahead of this date in the event that tax relief is cut for high earners. It is unexpected at this point, but there have been indications that a reduction in pension tax relief for those in the higher rate bracket could be an option to reduce the country's deficit.
For more on these key dates for pensions, head over to The Telegraph website.
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