close menu

Act fast to double your tax-free UK pension contribution

by Sable International | Sep 16, 2015
  • HM Revenue and Customs (HMRC) will be extending tax relief to high earners through a transitional allowance that enables them to double their pension contributions. This is a small relief ahead of the UK government’s restricting of pension contribution tax relief for high earners in the 2016/2017 tax year, as announced in the Summer Budget Statement.

    How the transitional allowance works

    The 2015/2016 tax year, as far as pension contributions are concerned, will be made up of two “mini-tax years”. The first “year” runs from 6 April 2015 to 8 July 2015 (pre-budget) while the second runs from 9 July 2015 to 5 April 2016 (post-budget). 

    This means that all pension contributions before 8 July will be considered part of the first mini-tax year. Any contributions after that will be considered part of the second mini-tax year.

    This gives you the opportunity to receive tax-relief for an £80,000 pension contribution, instead of the usual £40,000, for the 2015/2016 tax year. 

    Here is a table that describes how your post-budget contributions could vary, depending on how much you paid into your pension prior to the Summer Budget Statement:


    Pre-budget contributions
    (06 April 2015 – 08 July 2015)



    Post-budget potential contributions
    (09 July 2015 – 05 April 2-16)












    Important considerations

    To take advantage of the transitional allowance, you need take note of the following:
    The maximum post-budget contribution you can make is £40,000. This is without taking the value of your pre-budget contributions into account.

    The usual tax-relief rules still apply and earnings for the tax year must match, or exceed, your income.

    If you are subject to the Money Purchase Annual Allowance, specific provisions have been made for you, which you can read here.

    These new provisions are complex and, in order to ensure that you make the most out of this temporary allowance, we strongly advise that you contact a Sable Wealth adviser.

    You can contact us on +44 (0) 20 7759 7519, you can also email our wealth team.

    We are a professional services company that specialises in cross-border financial and immigration advice and solutions.

    Our teams in the UK, South Africa and Australia can ensure that when you decide to move overseas, invest offshore or expand your business internationally, you’ll do so with the backing of experienced local experts.

    • Lightbulb working
      South Africa’s Retail Distribution Review – slow but important changes for investors and advisors
      Mar 05, 2019  |  by Mike Abbott
    • Typical-english-house
      Common mistakes that first-time homebuyers make
      Dec 06, 2018  |  by Ian Henning
    • Man-on-a-rocket
      Are you a UK contractor? Maximise tax-efficiency by using your pension
      Sep 25, 2018  |  by Bill Monty
    • terraced-houses-in-london
      Are you a UK contractor? Here’s how to get your mortgage approved
      Sep 12, 2018  |  by Marlon Borez
    • property-feud
      The hidden dangers of not having a will in the UK
      Sep 07, 2018  |  by Sherron Alexander-Bedingfield
    • typical-english-house
      You can receive your rental income tax-free if you don’t live in the UK
      Jul 12, 2018  |  by Ian Henning
    • carrot-incentive-running-track
      UK pensions: Between a QROP and a hard place? Or is it a damp SIPP?
      Jun 21, 2018  |  by Niel Pretorius
    • piggy-bank-dollar
      What to do with your living annuity when you retire abroad
      Jun 11, 2018  |  by Niel Pretorius
    • house-london
      In the UK, mortgage inaction is pickpocketing thousands of homeowners
      Jun 07, 2018  |  by Bill Monty
    • Hand-currency-blue
      Saying goodbye to South Africa? Financial emigration can give you access to your RA before you turn 55
      Apr 13, 2018  |  by Niel Pretorius

    South Africa

    Cape Town

    Regent Square
    Doncaster Road
    Kenilworth 7708 +27 (0) 21 657 2120


    25 Richefond Circle
    Umhlanga 4320 +27 (0) 31 536 8843

    United Kingdom


    One Croydon
    12-16 Addiscombe Road
    Croydon CR0 0XT +44 (0) 20 7759 7514



    9 Yarra Street
    South Yarra
    VIC 3141 +613 (0) 8651 4500

    Sable International is a trading name of 1st Contact Money Limited (company number 07070528), registered in England and Wales. We are authorised and regulated by the Financial Conduct Authority in the UK (FCA no. 517570), the Financial Services Conduct Authority in South Africa (1st Contact Money [PTY] Ltd - FSP no. 41900) and hold an Australian Financial Services License issued by ASIC to deal in foreign exchange (1st Contact Group - AFS License number 335 126).

    We use cookies to provide the best website experience for you. Using this website means that you agree to this. How we use cookies.