Budget Update: Relief for pension contributions

From 6 April 2011 tax relief on pension contributions is to be restricted.The relief will be restricted to the basic rate of income tax – currently 20% – for those individuals earning in excess of £180,000. Relief will be tapered between 20% and 40% for those earning between £150k and £180K.

Transitional provisions will take effect immediately, effectively closing any window of opportunity between now and 6 April 2011.

The rules are complex and more information can be found by clicking here.

Duncan R Glassey
Senior Partner – Wealthflow LLP

[email protected]

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