Scots advised to take advantage of pension tax breaks after Budget

People living in Scotland on higher incomes have been advised to take advantage of the tax breaks available to them to counterbalance the decision to freeze the thresholds for intermediate, higher and top rates of tax. NFU Mutual said this decision makes it more important for people to take up measures that can reduce their tax bills. 

Chartered Financial Planner at the firm Sean McCann said, "Scottish taxpayers could be missing out on hundreds of pounds by failing to claim the extra tax relief they’re entitled to on their pension contributions. For every £80 paid into a pension, the government will add an extra £20. Those paying the intermediate, higher or top rates of Scottish Income tax are entitled to claim back extra money direct from HMRC." This could save someone making £50,000 in contributions £1,300 in rebates. 

Mr McCann also noted that couples claiming the marriage allowance - worth up to £238 in the current tax year - are set to face a growing differential between Scotland and elsewhere in Britain, with instances of people in other parts of the UK earning up to £50,000 getting this tax break, while Scots on as much as £6,000 less will not.