Mrs A. Thompson –v- Scancrown Ltd, trading as Manors In a case that received widespread…
PLEASE NOTE: Information in this article is correct at the time of publication, please contact DFA Law for current advice on older articles.
The Government has announced that from April 2011 the maximum pension contribution which will attract full tax relief is being restricted to £50,000 per year and the lifetime allowance (LA) will be reduced to £1.5 million from April 2012.
Where a defined benefit scheme is in place, a multiple of 16 will apply, so an extra guaranteed pension of £3,125 per year will be regarded as the equivalent of a £50,000 contribution.
The Government has also promised to legislate to remove the tax benefits attaching to the use of a variety of tax-saving vehicles, such as employee benefit trusts.