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KEITH M GORDON summarises the PBR announcements relating to pension contributions
KEY POINTS
- Anti-forestalling rules apply to relevant income of £130 000.
- Consultation on tapering relief on pension contributions.
- Employer contributions will be included.
- Definitions of gross and pre-tax income tightened up.
Readers with a long memory will recall that the FA 2004 rules concerning pension contributions were intended to be simple. The notion of simplification went out of the window however earlier this year when the Government announced rules to come into effect from 6 April 2011 that would prevent higher earners from avoiding the full impact of the proposed 50% income tax rate by making pension contributions.
So as to prevent individuals from forestalling the post-2011 changes FA 2009 Sch 35 contained complex provisions designed to prevent (or at least to limit) those on higher incomes...
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