22 April 2009
Chancellor of the Exchequer, Alistair Darling, today announced
in his Budget speech that he is to restrict higher rate tax relief
on pension contributions for those with incomes over £150,000. This
will be effective from 6 April 2011.
Details of how exactly this will work have not yet been decided.
However, Mr Darling did say that for incomes above the £150,000
level, the value of pensions tax relief will be tapered down until
it is 20% for those on incomes over £180,000.
The government is to consult on the implementation of this
measure.
In anticipation of this change, Mr Darling announced that
legislation will be introduced to prevent individuals taking
advantage of the pensions tax relief while it is still available to
them at a higher rate. Click here to read HM Revenue & Custom's
guidance on these restrictions.
Those who have never earned in excess of £150,000 are
unaffected, as are those who continue with their regular pattern of
contributions.
