R
Roger_Wilco
Guest
“Restricting tax relief on pension contributions for high-income individuals – comparisons between the anti-forestalling rules and the proposed changes from April 2011Background
At Budget 2009, the Government announced its intention to bring in new rules for pensions tax relief to apply from 6 April 2011. At the same time, the Government introduced new rules (known as anti-forestalling rules) that apply from 22 April 2009. These anti-forestalling rules are intended to prevent people making substantial additional pension contributions, taking advantage of the full tax relief available, before the changes in 2011 come into force.
At the Pre-Budget Report 2009, a consultation document ‘Implementing the restriction of pensions tax relief’ was published which set out how the restriction of higher rate tax relief will be implemented in 2011.
Also at the Pre-Budget Report the existing anti-forestalling income threshold was reduced from £150,000 to £130,000 with effect from 9 December 2009, although the income definition was unchanged”
Dear folks
In the financial year 2010 - 2011, I will be taking voluntary redundancy on November 30th 2010.
The redundancy payment on the 1st Dec will be £126,000, and my gross income from work will be £3.5 K per month for 8 months .April to November 2010 inclusive..= £28 K
plus 4 months of final salary pension..= £8k. (December to March 2011) My salary and pension contributions have been similar over the last 30 years (apart from pay rises) My current salary is £42,000 (approx 3% less the preceding two years ) with pension contributions of about 6%.
I intend putting £96,000 into my pension scheme and keeping £30k tax free. Will I be liable for tax under the "restrictions of pension tax relief"
I will be taking a tax free lump sum from my pension of £160,000 on December 1st 2010 and will receive a pension of approx £22,000 pa
I am totally confused now over all these changes, can anyone offer advice or help?
Many thanks
At Budget 2009, the Government announced its intention to bring in new rules for pensions tax relief to apply from 6 April 2011. At the same time, the Government introduced new rules (known as anti-forestalling rules) that apply from 22 April 2009. These anti-forestalling rules are intended to prevent people making substantial additional pension contributions, taking advantage of the full tax relief available, before the changes in 2011 come into force.
At the Pre-Budget Report 2009, a consultation document ‘Implementing the restriction of pensions tax relief’ was published which set out how the restriction of higher rate tax relief will be implemented in 2011.
Also at the Pre-Budget Report the existing anti-forestalling income threshold was reduced from £150,000 to £130,000 with effect from 9 December 2009, although the income definition was unchanged”
Dear folks
In the financial year 2010 - 2011, I will be taking voluntary redundancy on November 30th 2010.
The redundancy payment on the 1st Dec will be £126,000, and my gross income from work will be £3.5 K per month for 8 months .April to November 2010 inclusive..= £28 K
plus 4 months of final salary pension..= £8k. (December to March 2011) My salary and pension contributions have been similar over the last 30 years (apart from pay rises) My current salary is £42,000 (approx 3% less the preceding two years ) with pension contributions of about 6%.
I intend putting £96,000 into my pension scheme and keeping £30k tax free. Will I be liable for tax under the "restrictions of pension tax relief"
I will be taking a tax free lump sum from my pension of £160,000 on December 1st 2010 and will receive a pension of approx £22,000 pa
I am totally confused now over all these changes, can anyone offer advice or help?
Many thanks
