Chancellor George Osborne struck a Robin Hood-style pose during his Autumn Statement as he sought to demonstrate “we are all in this together” by announcing measures to take more tax from the better off.
As predicted by Rebecca Benneyworth, the move on wealthy taxpayers too the form of a reduction in tax relief on pensions savings. From 2014-15 the annual allowance for pensions tax relief will drop from £50,000 to £40,000 and the lifetime allowance for will be reduced from £1.5m to £1.25m.
The detailed Finance Bill 2013 draft clauses effecting these changes will be published in on 11 December 2012.
HMRC also advised that a transitional “fixed protection” regime will be put in place to help those affected by reduced the lifetime allowance. The go...