The latest HMRC Pension Scheme newsletter contains details and links to information on the 2009 Budget announcements in connection with pension savings. The main announcement was the restriction of tax relief for pension savings for those with income of £150,000 or more, starting from April 2011. Relief will be tapered away so that for those with income over £180,000 it is worth 20 per cent, the same as to a basic rate taxpayer.

The budget provisions prevent those potentially affected from seeking to forestall this change by increasing their pension savings in excess of their normal regular pattern, prior to that restriction taking effect. These anti-forestalling provisions will have effect for affected contributions paid under money purchase schemes on or after 22 April 2009. The provisions will also have effect in respect of affected increases in the rights of individual members under defined benefits pension schemes arrangements (often referred to as final salary schemes) on or after 22 April 2009.

Full detail of the budget related pension changes and further updates on pension and tax are available from http://www.hmrc.gov.uk/pensionschemes/ps-newsletter37.htm#8.