Eye watering rules affect pension contributions by the wealthy

Kashflow logo
Share this content

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. Oddly, however, the transitional rules will reduce tax relief to 20% for those affected even though we have already been told that relief will be tapered at 150,000, only reaching 20% at income of 180,000. It would seem that the transitional rules put some contributors in a worse position than they will be after the change!

Of course rules affecting those with income of 150,000 or more do not have the wid...

Please Login or Register to read the full article

The full article is available to registered AccountingWEB.co.uk members only. To read the rest of this article you’ll need to login or register. Registration is FREE and allows you to view all content, ask questions, comment and much more.

About AccountingWEB


Please login or register to join the discussion.

07th May 2009 09:18

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


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 +.

Thanks (0)
By Anonymous
27th Apr 2009 20:11

Complexity and confusion
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.

Thanks (0)