Pension Tax Relief Consultation
by Ashley Clark, Director - July 2010
Con-Lib Government plans to cut pension tax relief look set to be simplified again but cut dramatically as the Treasury consults with the industry on the same.
2006 - Original pension simplification rules, a yearly pension contribution limit of over £200,000 per person with full tax relief for both basic rate and higher rate tax payers. I.e. up to 40% tax relief
2009 - March 2009 Budget cuts higher rate pension tax relief for those earning over £150,000 and then again further limits applied with effect December 2009 (pre budget) for restrictions to higher rate relief for those earning over £130,000.
2011 - Currently all high earners (over £130,00) will receive tax relief limited to 20%.
Con-Lib Consultation 2011?
Watch this space …..