Pension Planning for High Earners

The subject of higher rate tax relief on pension contributions has been the subject of much rumour in the past; before every Budget there is conjecture that the government will end it. Something finally happened in this respect in March 2009, when it was announced in the Budget that higher rate tax relief for high earners would end in 2011. High earners were those with a taxable income of more than £180,000. If an individual had an income of between £150,000 and £180,000 for the current tax year or for either of the two preceding tax years, they will find their higher rate tax relief is ‘t...