With tax year end just around the corner, it’s time to check you are making the most of your tax reliefs and allowances to save for a brighter future. You may want to consider

High earners: making a pension contribution before the tax year end could increase your annual allowance

  • Those with a high income will face a cut in the amount of tax-efficient pension saving this tax year. The standard £40,000 AA is reduced by £1 for every £2 of ‘income’ you have over £150,000 in a tax year, until the allowance drops to £10,000.
  • But it is possible you may be able to reinstate the full £40,000 allowance by making use of carry forward. The tapering of the annual allowance won’t normally apply if income less personal contributions is £110,000 or less. A large personal contribution using unused allowance from the previous 3 tax years can bring income below £110,000 and restore the full £40,000 allowance for 2018/19. And some of it may attract 60% tax relief too.
  • When working out how much carry forward is available, high earners may also have had a reduced annual allowance from 2016/17 or 2017/18.

Key information

  • Adjusted Income for this year (broadly total income plus employer contributions).
  • Threshold Income for this year (broadly total income less individual contributions).
  • Any unused annual allowance available from current year and previous 3 years.

Please be aware that the value of investments and the income derived from them can fall as well as rise and you may not get back what you invest. The Financial Conduct Authority does not regulate tax advice.


Effective tax planning is a year round job. It’s only at the end of the tax year that you have all the pieces to complete the planning jigsaw, but there are steps you can take now to get ahead of the game and give yourself time to put plans in place. And with less than 7 weeks until 6 April, there’s no time like the present to get started.