Draft technical guidance on the High Income Excess Relief Charge legislation has been published by HMRC. HMRC have stressed that the guidance is in draft and may need to be amended to reflect future changes. This legislation was introduced to restrict the tax relief on contributions to Registered Pension Schemes with effect from 6 April 2011 for high income individuals. The restriction will apply to people with pension savings and who have a gross income of £150,000 and over. Relief will be tapered away so that for those earning £180,000 and over, it is worth 20 per cent, the same as to a basic rate taxpayer.

This document contains draft technical guidance which explains the key elements of the legislation and how the restriction will be applied. The draft guidance will be incorporated into the technical pages of the Registered Pension Scheme Manual.