Looking ahead to 6 April 2011

    May 2010

    Taxation of Pensions for "High Income Individuals" and Employer Financed Retirement Benefit Schemes (EFRBS)


    With effect from 6 April 2011 individuals with income of £180k or more will become subject to legislation which is designed to reduce the value of the tax relief on their pension contributions to registered pension plans from 50% to 20%. Individuals with income in the range between £150k and £180k will be subject to a phased restriction, with the relief tapering down from 50% to 20%. The legislation contains measures to block attempts to side step these rules by putting individuals whose pension input is funded by employer contributions in a similar position to individuals whose pension input is funded from employee pay.