Tax tip: Relief on tax-advantaged arrangements

As we approach the first Budget of the new Labour government tax advisers will be conscious that pension contributions ISAs and similar arrangements are a potential ‘target’. Advisers will be aware of the ‘black hole’ in the government’s finances and the fact that UK tax relief on pension schemes for example costs the Treasury £45bn – £50bn annually.

While there is uncertainty as to what changes (if any) the government could make from a pensions contributions and ISA perspective – and taxpayers should not only consider tax relief when assessing what they should be doing in these areas and should also seek advice from a professional financial adviser – it is inevitable that some taxpayers and businesses might want to take a ‘prudent approach’ and do what they can to try and avoid any ‘unnecessary risks and costs’.

For example one may find that...