The most controversial of the measures introduced in the last Budget was a restriction on tax relief on pension contributions affecting those with income of more than £150,000. Although this measure will not come into force until 2011, concern about affected taxpayers avoiding the change by inflating their contributions in the current year resulted in the ‘pensions forestalling’ measures. In short this measure is intended to prevent those with income in excess of £150,000 from increasing their contributions in 2009/10 and 2010/11, but as the rules are extremely complex you will need to take detailed advice if you think you might be affected by them. The Pre Budget report reduced the limit for affected taxpayers to £130,000 with effect from 9 December 2009.
Tags: Government, Pensions
