Rewards & BenefitsEmployee BenefitsBudget 2016: Tax relief extended for employer-funded pension advice

Budget 2016: Tax relief extended for employer-funded pension advice

Employers wishing to make pension advice available to their workforce will be able to claim relief on the first £500 spent per employee.

Employers wishing to make pension advice available to their workforce will be able to claim tax relief on the first £500 spent per employee.

The increase from £150 was recommended as part of the Financial Advice Market Review released earlier this week.

It means from April 2017 an additional £350 for employer-arranged pension advice will be tax and National Insurance Contribution exempt.

The government will also consult on proposals to allow savers to withdraw £500 tax free form their defined contribution pension pot before the age of 55 to redeem for regulated financial advice.

The employer relief is expected to cost around £10m per year for the first two years it operates.

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