Following the government’s announcement that pension relief is to be reduced from April next year, ACCA (the Association of Chartered Certified Accountants) is reminding everyone across Northern Ireland that any unused relief from the past three years is still open to them.

Pension relief – the amount that can be paid into a pension fund in any single year tax free – is currently £40,000, but from April 2016 that will fall to £30,000 for everyone and even lower if you pay 45% income tax. However, what some people may not realise is that unused contributions from the last three years can be carried forward.

Chas Roy-Chowdhury, ACCA head of taxation, said: “£40,000 or even £30,000 may sound like a lot of money to pay into a pension fund but that includes both employer and employee contributions, and for anyone with more than one pension fund it is the total amount spread over the multiple schemes.

“It is very disappointing the government has chosen to reduce the amount people can save tax free for their retirement. It is another blow to creating a nation of savers – as the Chancellor and Prime Minister pledged to do after being elected in 2010. I would urge everyone that is able to use their full allowance every year, to check whether they have unused allowance from previous years. If you are unsure check with your pension provider, they will be happy to provide you with a statement of contributions for each year.

“Those hit hardest, again, will be those just entering the workplace. Not only will they have a reduced yearly allowance but also a reduced lifetime allowance. The government seems to be targeting younger workers and making it more difficult for them to save for their retirement. It may be a long way off for this group but they will undoubtedly feel the effects the most as they progress through their careers.”

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For further information:

Shane Finnegan or Katrina Frazer, Aiken PR

Tel: 028 9066 3000

Email: Shane@aikenpr.com or Katrina@aikenpr.com

Notes to Editors

About ACCA

ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. It offers business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.

ACCA supports its 178,000 members and 455,000 students in 181 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. ACCA works through a network of 95 offices and centres and more than 8,500 Approved Employers worldwide, who provide high standards of employee learning and development. Through its public interest remit, ACCA promotes appropriate regulation of accounting and conducts relevant research to ensure accountancy continues to grow in reputation and influence.

Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. It believes that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. ACCA’s core values are aligned to the needs of employers in all sectors and it ensures that through its range of qualifications, it prepares accountants for business. ACCA seeks to open up the profession to people of all backgrounds and remove artificial barriers, innovating its qualifications and delivery to meet the diverse needs of trainee professionals and their employers. More information is here: www.accaglobal.com