In recent months, the issue of the pensions Tapered Annual Allowance has never been far from the headlines. As senior NHS staff cut hours and refused additional shifts in order to avoid a significant tax bill, the government announced an urgent review into the issue in late 2019. During his Budget speech on 11 March 2020, the Chancellor announced the results of that review, and the changes that will be made for the 2020/21 tax year. Of course, it hasn’t just been NHS staff that have been impacted by the taper, so here’s your summary of the changes. Increases in the thresholds that determine the taper During his Budget speech, Rishi Sunak announced that, from 6 April 2020, there will be an increase in the two thresholds that determine whether you are affected by the taper of the annual pension savings allowance, and by how much. These changes will affect both individuals and employers. The rules are complicated so here’s a look at who these changes will impact – both positively and negatively. The current position for individuals In the 2019/20 tax year, if your ‘threshold income’ (broadly, all income including investment income, less certain deductions) is less than [...]