Too much or too little income »
Maximising pension contributions is something of a balancing act and for those with fluctuating income it can be a virtually impossible to utilise their whole allowances without wasting tax relief or getting an annual allowance charge.
The premium limitation on qualifying life policies and restricted relief qualifying policies – part 1 »
This series of articles has been prompted by an increase in the number of questions we have recently received relating to the £3,600 annual premium limit imposed on certain qualifying life assurance policies from 6 April 2013. The questions relate primarily to the implications for qualifying policy status following a premium increase which may cause the £3,600 premium limit to be breached. Such a breach could result in the policy becoming a restricted relief qualifying policy (RRQP). This means that the benefits under the policy will not be fully relieved from income tax when a deemed chargeable event occurs. In some circumstances a qualifying policy could also become a non-qualifying policy in which case the policy benefits would not benefit from tax freedom.