by Cherry
12. November 2010 19:01
In October, the Treasury announced changes to pensions tax relief. The annual allowance for tax-privileged pension saving will be reduced from £255,000 to £50,000 from April 2011, and the lifetime allowance from £1.8m to £1.5m from April 2012.
The change is targeted at those who make the most significant pension savings; an annual allowance of £50,000 will affect 100,000 pension savers, 80% of whom will have incomes over £100,000. To protect indivduals who exceed the annual allowance due to one-off 'spike' in accrual, the government will allow individuals to offset this against unused allowance from previous years.
www.hmrc.gov.uk