June Budget – Pensions taxation NEST
Major changes to pension schemes are being introduced from 2012 when employers will be required to ensure that employees are either a member of their pension scheme or of the National Employment Savings Trust (NEST).
New legislation is to be introduced to enable NEST to be registered with HMRC for tax purposes. This will ensure that members of NEST and contributing employers would be able to benefit from the tax reliefs available to registered pension schemes on contributions and investment growth and to be subject to the same tax rules as other tax-registered pension schemes.
The new legislation will be included in the Finance Bill to be published after Parliament’s summer recess.