Mailings
Thursday 13 August 2009
Finance Act 2009 New rules for tax relief on pension contributions
The Finance Bill became law on the 21st July 2009. This finalised the new set of rules restricting tax relief on pension contributions for those with income in excess of £150,000 per annum.
The final version of the rules contains some differences to the draft proposals announced in the Budget on the 22nd April. We have therefore re-written our Guidance Notes on Pension Contributions which are attached to assist you with helping your clients who fall into this category, and cover all other issues relating to payment of pension contributions to IPS pension arrangements.
Due to the significance of these regulations we propose to send a copy of our guidance notes to all clients who are not receiving full income drawdown from their pension arrangements with IPS.
The following letter will accompany the guidance note. However, if you would prefer that we did not send this to your clients, please would you let us know within the next seven days.
I would like to point out that the role IPS plays in claiming tax relief on pension contributions remains unchanged and the regulations do not require us to police these new rules. We will therefore continue to accept contributions in good faith and process them in the usual way.
If you have any queries on these issues, please speak to your usual contact:
The IPS Partnership