View Authors March 2011
BUDGET NOTES - PENSIONS
- The changes to the pensions tax regime announced last year, including reductions in the annual allowance and lifetime allowance, remain unchanged. For more details see the section headed “Last year’s announcements” below.
- A consultation will be launched on limiting the tax relief on asset-backed contributions made by employers to defined benefit schemes.
- The proposed merger of the income tax and National Insurance contributions (“NICs”) regimes will not affect individuals above the state pension age and NICs will not be extended to pensions or savings income.
- A consultation will also be launched with the aim of reforming and simplifying the state pension system.
- The Government has backed the recommendations made by the report of Lord Hutton’s Independent Public Service Pensions Commission. The recommendations will be used as a basis for consultation with public sector workers, trade unions and others.