Pensions A-Day

Pensions A-Day

New rules in relation to pensions came into force on 6 April 2006, commonly referred to as A-Day . The changes affected everyone involved in pension planning and were introduced in the name of simplification. Essentially, the changes unified the existing pensions legislation at the time to create a new basis for the operation of all pension arrangements. For some, this meant improvements in their position, but for others there were further restrictions and, potentially, additional tax liabilities. Tax Relief Individuals will be eligible for relief at their marginal rate of tax on contributions into pension schemes. This relief will be available on contributions of up to 100% of the individual’s annual earnings or £3,600 (if greater). For higher earners, tax relief will only be ... »