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Finance Act Receives Royal Assent

I have taken this from Standard Life's press release that has just been issued:

The Cutting Edge - Finance Act 2009 receives Royal Assent

The Finance Act 2009 has now received Royal Assent. The Act includes the pension and tax changes announced in this year's Budget dealing with pension contributions made between Budget day and 5 April 2011 by high income individuals. While the changes only have an immediate impact on a small fraction of the UK population the shockwaves, which resonate from removing the principle that people get tax relief on pension contributions at their highest marginal rate, should not be underestimated.
Following some sustained lobbying by the industry there was a relatively late change to the rules, introducing some further leeway for those high income individuals who have a history of paying irregular contributions. Full details of the revised rules and how they impact upon people is detailed below.
While the Finance Act is now law it is likely that some further changes will be introduced in two specific areas through forthcoming regulations. The first is around transfers. As things stand, high income individuals who move their pension provision to a new provider may fall foul of the new special annual allowance tax charge even if they don't increase contributions.
This Finance Act contains the rules covering the position between Budget day and 5 April 2011 - so that part is largely done and dusted. The Government suggests the rules for 2011 onwards will be included in a Finance Bill early in 2010. It's therefore likely that these measures will be law before any General Election. The Conservatives have said they are unlikely to repeal any legislation if they win the election, so it seems likely we will have to cope with these rules whichever Government is in power in future.

If you are wondering how this is likely to affect you, feel free to contact me.

 

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