The Chartered Institute of Payroll Professionals
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Cost of pensions tax relief projected to be £41.3 billion in 2019-20 4 October 2021
Statistics from HMRC have revealed that gross pensions tax relief is projected to be £41.3 billion for 2019-20.
This is an increase from the figure of £38.2 billion in 2018-19, and the amount has increased by £4.4 billion since 2017-18.
Basic rate taxpayers get 20% tax relief, higher-rate taxpayers get 40%, whilst additional-rate taxpayers receive 45% tax relief.
Commentary indicates the increase will have been driven by the increase to mandatory contributions under Automatic Enrolment (AE), which went up from 2% in 2017-18 to 8% in 2019-20.
CIPP comment
With figures of this level, will the Government look to review the way pensions tax relief is given? The CIPP’s policy team will be watching and reporting on the Budget, on 27 October 2021 to keep payroll professionals up to date.
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Pension schemes newsletter 133 – September 2021 4 October 2021
HMRC has published the latest pension schemes newsletter – number 133, for September 2021, in order to update stakeholders on the latest news for pension schemes.
This instalment contains articles on:
• Relief at source – annual return of information and notification of residency status reports • Pension scheme migration • Reporting multiple small pots payments using Real Time Information (RTI) • Updates to the HMRC Pensions Tax Manual • • Back to contents
Widespread small pension pot consolidation intended for 2025-26 5 October 2021
The Small Pots Cross-Industry Co-ordination Group has published a roadmap, which includes a date for the implementation of a mass-scale consolidation model for small pension pots, in its latest progress report. This is scheduled to take place in 2025-26.
The Chartered Institute of Payroll Professionals
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