Pension tax relief

The face of pensions may once again be changing beyond recognition, with the first checkpoint being less than two months away. On 16th March the chancellor will present the next Budget, when tax relief for higher-rate tax payers looks likely to come under scrutiny.

Currently, you can receive up to 45% tax relief on personal pension contributions, depending on your circumstances. See a quick breakdown below:



On the 16th March we anticipate that the chancellor will announce the outcome of a recent review on pension tax relief. If changes do go ahead, it is likely that higher-rate (40%) and additional-rate (45%) tax payers will see a reduction in tax relief.

There has been lots of chatter about what the new changes could bring, from a new, single flat rate of tax relief, to upfront tax relief being removed altogether in exchange for tax-free withdrawals.

Invest now!
By investing into your pension now, or at least before the 16th March, you could save thousands of pounds in tax relief that you may not have access to in the future.

If you are a new pension investor through Chelsea* simply complete our quick online questionnaire.

Maybe you are looking to open a pension for the first time, maybe you have worked for a number of employers and are now looking to consolidate them into one place, or maybe you really want to utilise tax relief before it is too late? Whatever the reason, do it with Chelsea.

• 0% set-up charge
• 0% initial charge on funds
• Competitive service and platform charge
• Free transfers in
• Free telephone dealing
• Free switching online, by post and on the telephone
• Low-cost drawdown option
• Twice-yearly statement with expert research commentary
• 0% probate processing
• Dedicated pensions administrator

If you are a higher-rate or additional-rate tax payer, time may be crucial to save thousands in tax relief. To ensure that you are invested before the Budget, please send all paperwork and payment to be received by:

• 10th March - if you will be paying by cheque (made payable to Cofunds Ltd)
• 13th March - if you are paying by BACs/CHAPs

*Self-Directed Cofunds Pension Account. Please be aware that there is a minimum investment of £5,000 to open the pension, either from a lump sum and/or transfer.