Budget 2009: Pensions - What Do The Changes Mean For You?

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Budget 2009: Pensions - What Do The Changes Mean For You?

Originally Published on 9th June 2009

Introduction

One of the headlines in the Chancellor's Budget was that,

from April 2011, tax relief on pension contributions will be

restricted for those with incomes of £150,000 and over. Under

the changes, the value of the relief will be tapered down until it

is worth just 20% for those earning £180,000 or more. Those

with incomes below £150,000 will continue to enjoy tax relief

at up to 40%.

The Government has justified this by stating that those with

incomes of over £150,000 represent only 1.5% of pension

savers, but receive a quarter of the cost of tax relief on

contributions. That ben...

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