Budget 2010 – Pension changes
The Chancellor confirmed a number of measures in relation to pensions:
- With effect from 6 April 2011 the restriction of tax relief for tax payers earning in excess of £150,000 per annum is confirmed. Tax relief for taxpayers with annual incomes between £150,000 and £180,000 will be restricted on a tapered basis. Taxpayers with annual total income of £180,000 or over will be restricted to tax relief at the basic rate on pension contributions.
- The Registered Pensions Scheme 2010-11 Lifetime Allowance of £1.8 million and Annual Allowance of £255,000 will continue to apply at these levels for a further five tax years, i.e. up to and including the tax year 2015-16.