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MARK MORTON explains the calculations for the ‘anti-forestalling’ pensions charge in 2009/10 and 2010/11
KEY POINTS
- Key definitions – relevant income SAA and TAPIA.
- Six steps to calculate relevant income.
- Calculation of protected inputs.
- TAPIA is not the same as under the basic rules.
In April 2009 the Government announced its intention to restrict to the basic rate of income tax tax relief on pensions’ savings with effect from 6 April 2011 for individuals with gross income of £150 000 or more.
That now appears to be in doubt with the current Finance Bill giving the power to repeal the provision introduced in FA 2010 before 31 December 2010 and the Government indicating during the debate last week that they intend to substitute a cap of around £35 000 to £45 000.
However the transitional provisions covering the period from the 2009 Budget until 5 April...
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