Colin Batchelor looks at some of the implications arising from recent pension tax relief reform
Following the Coalition Government’s radical reforms on the restriction of pension tax relief from 6 April 2011, it is essential that advisers consider the ramifications for their clients. As we are all aware, the key change is that the new annual allowance (AA) for pension input periods (PIPs) ending in the 2011/12 tax year will fall to £50,000 (currently £255,000). Opportunities do exist for those unaffected by the anti-forestalling rules to make substantial contributions before 6 April 2011; the danger is that it is easy to misunderstand the PIP, which if not used properly, may result...
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