Wealth management affected by pension tax changes

Wealth management for Britons with significant personal means is likely to be altered by the changes being made to the current system of pensions tax relief.

Annual allowances have been reduced and those with private wealth may wish to diversify their investment portfolio in order to ensure maximum returns on assets.

Up to £50,000 a year is now eligible for tax-privileged pension saving, a significant reduction from the previous £255,000 threshold and one that is likely to make Britons think carefully about their wealth-management plans.

Financial secretary to the Treasury Mark Hoban stated: "We have … developed a solution that will help to tackle the deficit but not hit those on low and moderate incomes. We have taken a tough but fair decision."

He suggested previous proposals were overly complex and claimed the new approach encourages people to save while providing increased fiscal revenue.

In a statement the National Association of Pension Funds supported the changes, saying moderate earners had been protected by the new approach.  ADNFCR-2318-ID-800116239-ADNFCR