Senior optical practitioners advised to review pension tax provision

Senior optical practitioners across the UK are being advised to review their pension provision due to HMRC changes.

From 6 April 2014, the lifetime allowance (LTA) – the maximum amount of pension savings that an individual can amass and still qualify for tax relief over their lifetime – will reduce from £1.5m to £1.25m. Individuals who accumulated pension pots over £1.25m may face a tax charge of 55 per cent on any excess.

The annual allowance (AA), which is the maximum annual contribution allowed into a pension scheme that qualifies for tax relief will also reduce from £50,000 to £40,000 in any one year.