For some people – most definitely !
With effect from the 2010/11 tax year, individuals lose £1 of their personal allowance for every £2 of earnings above £100,000.
This means that an individual with total taxable income above £112,950 will not receive any personal allowance. A pension contribution that reduces taxable income to less than £112,950 gets back some, or all, of the personal allowance, at an incredible effective rate of tax relief at 60%.
This opportunity continues into the new tax year when the earnings figure used above increases to £114,950.
If you would like more information on end of year tax planning opportunities centred on your personal circumstances, please contact us >>