Eye watering rules affect pension contributions by the wealthy

As a consequence of the planned restriction of tax relief on pension contributions by those earning more than £150,000 from 2011, the Government has also brought in “anti forestalling” measures from Budget day.

These rules are intended to prevent those affected by the restriction in 2011/12 paying very large sums into their pensions between now and April 2001 to benefit from extra tax relief.

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Comments

Public sector

AnonymousUser | | Permalink

I wonder if the 171 civil servants who earn more than this amount will have their pensions capped?

http://www.thisislondon.co.uk/news/article-23373106-details/Revealed:+Public+sector+%27fat+cats%27+who+earn+more+than+%C2%A3150,000+per+year/article.do

And they enjoy rather more security of job and salary than many of those in the private sector or in professional practices who earn 150k +.

Complexity and confusion

Anonymous | | Permalink

I used to understand the rules about pension contributions and tax relief - I'm glad I'm now retired! What happened to "pension simplification"? My best wishes to all those struggling with this latest example of needless complexity. A similar result could be achieved by far simpler, if less politically motivated, means.