Alistair Darling's budget speech on 22 April 2009 announced that higher rate tax relief would be restricted on pension payments made by high-income individuals from 6 April 2011. It also introduced anti-forestalling measures to stop high-income individuals from making large payments before that date. The Pre-Budget Report on 9 December 2009 extended these measures.
The anti-forestalling measures were introduced with immediate effect. This series of notes is designed to explain how they affect pension planning and what is known so far about how higher rate tax relief will be restricted after 6 April 2011 for high-income individuals.
In order to maintain clarity, the notes are split into six parts, with the first note providing a high level summary of the key issues which are most likely to affect IFAs and their clients:
1 Key issues for financial planners
2. The effect on high-income individuals
3. Protecting existing payments
4. Calculating the protected pension input amount (PPIA)
5. Contributions refund lump sums (CRLS)
6. Keeping PPIAs on transfer - the rules
7. What you can do for high-income clients.
Note - The information provided is based on our current understanding of the 2009 Budget, the Pre-Budget Report 2009 and associated documents and may be subject to alteration as a result of changes in legislation or practice.
Published 12 January 2010
Updated 9 March 2010