Today, we’re taking another look at UK PENSIONS with new insights and the latest figures.
Your pension fund is like a personal savings pot for your retirement. The good news? Once your money is in there, it’s yours. No one can touch it, even if your company runs into problems.
There are great tax benefits with UK pension investments:
- The Corporation Tax rate used to be 19%, but it’s gone up.
- If your business makes profits between £50,000 and £250,000, you’ll now pay a tax rate of 26.5%.
- So, if you make £10K profit, that’s £2,650 in tax. But, if you put that £10K into your pension, you’ll spend just £7,350, all because of tax relief.
If something happens to you:
- Your pension fund goes straight to the people you choose, and they don’t have to pay any taxes on it.
- They can even leave the money where it is, and it’ll keep growing with good tax benefits.
There’s more good news. You can use your pension money to buy commercial property with a Self-Invested Personal Pension (SIPP). This means:
- No taxes on any increase in property value.
- Any rent you get goes straight into your pension, with no tax taken off.
- You can take out 25% of your pension money without paying tax, and the rest gets taxed at a lower rate.
Big updates on UK pension rules:
- You can now put up to £60K a year into your pension, up from £40K.
- There used to be a lifetime limit on how much you could save in your pension without extra tax. That’s gone now.
To wrap up, putting money into a UK pension is still one of the best ways to get tax breaks. With these new rules, it’s an even better deal. Think about adding more to your pension to make sure you and your family have a comfy future. Keep an eye out for more tips and updates on making the most of your money.