The Finance Bill 2011 became law on Wednesday, but many of the big pension tax relief changes have been in place for two months already. IFAOnline's panel of experts reviews their impact.
Annual Allowance The Act cuts the annual allowance (AA) on tax free contributions from £225,000 to £50,000, effective from April 2011. Contributions exceeding the limit will be taxed at individuals' marginal rates. Claire Carey, partner at law firm Sackers, gave two main methods to protect clients from AA tax charges: Make use of new carry forward provisions by spreading one-off spikes in accrual over unused allowance in the last three tax years Where employees look likely to exceed the AA on a regular basis as a result of high earnings or long service, employers can "aim off...
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