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This year is predicted to be a record year for bonuses, but the lucky recipients will have to consider maximising their tax breaks.
Wealthy investors have borne the brunt of new tax restrictions on saving and many cannot put any more cash into their pensions. The lifetime allowance, the total amount you can hold in a pension without incurring a tax charge of up to 55 per cent, was £1.8 million in 2012 but was cut three times to hit £1 million in 2017. Three small increases since have brought it up to £1,073,100, where it will stay until 2026.
If you are a high earner, the annual allowance of how much you can pay into a pension, tax-free, could be as low as £4,000.
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