Alistair Darling has announced he will restrict higher-rate tax relief on pension contributions for people with incomes over £150,000 from April 2011.
The Chancellor says, for incomes above the £150,000 level, the value of pensions tax relief will be tapered down until it is 20% for those on incomes over £180,000 - making it worth the same for each pound of contribution to pension entitlement as for a basic rate income tax payer. The Government says it will consult on the implementation of this measure. It adds that, in anticipation of this change, it was also introducing legislation to prevent individuals taking advantage of the pensions tax relief while it is still available to them at a higher rate, by making substantial additional...
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