Recent changes in pension legislation have significantly reduced the amount of tax relief available for pension contributions. Nonetheless, pension planning continues to be an important tax relief and depending on your circumstances should form part of the future retirement plans for most of us.

However, the recent restrictions to pension relief may make it necessary to consider other tax efficient investments and tax planning opportunities to optimise your overall financial position. We would of course be happy to advise you further in this respect.

The pension contribution rules which apply from 6 April 2011 are broadly summarised as follows:

• The annual allowance for pension saving is reduced from £255,000 to £50,000;
• The lifetime allowance will also be reduced from £1.8 million to £1.5 million;
• Contributions within the annual allowance will benefit from tax relief at the taxpayer’s highest marginal rate of tax;
• Unused reliefs can now be carried forward; the £50,000 annual allowance can be carried forward for up to three tax years. Depending on your circumstances, you may be able to make pension contributions of up to £200,000 in 2011/12.

Our team of advisers can consider how these new rules affect your pension position. We will also seek to ensure you are aware of the following issues and offer advice, which may include:

• The type of pension appropriate to your circumstances, including personal pensions, occupational pensions, self-invested personal pension schemes (SIPPs), qualifying recognised overseas pensions (QROPS) and qualifying non UK pension schemes (QNUPS) and International Pension Plans (IPPs);
• The contribution rules and tax reliefs available to you;
• The tax implications of exceeding contribution and lifetime allowance limits;
• Your options on retirement;
• Your options if you are leaving the UK to retire overseas.

We are not ourselves registered with the Financial Services Authority to conduct regulated business. We therefore have no interest in earning the highest commission from the sales of investment products.

We will work with your Independent Financial Advisor or we can introduce you to an IFA we have worked with in the past who can take care of the FSA aspects. However, our focus is on ensuring that any investment strategy you may select meets with your overall financial and taxation objectives.

If you require our assistance with pension planning please contact us at the earliest opportunity.