The Government has announced that from April 2011 the maximum pension contribution which will attract full tax relief is being restricted to £50,000 per year and the lifetime allowance (LA) will be reduced to £1.5 million from April 2012.
Where a defined benefit scheme is in place, a multiple of 16 will apply, so an extra guaranteed pension of £3,125 per year will be regarded as the equivalent of a £50,000 contribution.
The Government has also promised to legislate to remove the tax benefits attaching to the use of a variety of tax-saving vehicles, such as employee benefit trusts.
Says <<CONTACT DETAILS>>, “If you have set up schemes which now require a review, or need advice on the next step to take following the proposals, contact us.”
See the Treasury announcement at