Pensions restrictions |
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It was announced at Budget 2009 that, from 6 April 2011, tax relief on all pension contributions, including employers' contributions, would be restricted on a tapered basis for those with annual total incomes of £150,000 and over with full loss of higher rate relief for those with income of £180,000 or more. It is now proposed that 'income' will include the value of employer contributions - i.e. pension benefits funded by, or eventually funded by, the individual's employer.
Individuals with pre-tax incomes of less than £130,000 (including their own pension contributions and charitable donations but excluding employer contributions), will be excluded from the restriction and will not need to value their employer-funded benefits (reducing uncertainty and administration costs). Details of this and various other aspects of the restriction, including the valuation of employers' contributions to defined benefit schemes, are set out in a detailed consultation document.
Additional anti-forestalling provisions have been added to those already in force from 22 April 2009 for this affected group and are in immediate effect.
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