Graham Poulteney of BDO Investment Management Limited considers the Pre-Budget Report and its effect on pensions
As we already knew from 6 April 2011 those individuals with income over £180 000 will only be entitled to basic rate (20%) relief on pension contributions instead of the marginal rate relief at 50% that would otherwise have applied. Those with an income between £150 000 and £180 000 will have their relief restricted on a sliding scale.
The Chancellor realised the knowledge that tax relief on pension contributions is due to be restricted in less than two years' time would prove a great incentive to encourage many higher earners to consider making large contributions before the new rules take effect and thereby secure a higher rate of relief. Anticipating this possibility...
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Graham Poulteney of BDO Investment Management Limited considers the Pre-Budget Report and its effect on pensions
As we already knew from 6 April 2011 those individuals with income over £180 000 will only be entitled to basic rate (20%) relief on pension contributions instead of the marginal rate relief at 50% that would otherwise have applied. Those with an income between £150 000 and £180 000 will have their relief restricted on a sliding scale.
The Chancellor realised the knowledge that tax relief on pension contributions is due to be restricted in less than two years' time would prove a great incentive to encourage many higher earners to consider making large contributions before the new rules take effect and thereby secure a higher rate of relief. Anticipating this possibility...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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