FA 2010 comment: Pension relief claw back: an interesting form of simplification

Within four short years of 'A' day the milestone date that was intended to simply the pension regime we now find ourselves facing an ever more complicated system of dealing with pension relief. The Finance Act 2010 introduced legislation for the new 'high income excess relief charge' pension regime and although it sets out the basic mechanics of the new rules there are still some areas to be confirmed and we now have in stark print just how complex the rules are for those on higher incomes. The broad effect of these provisions is to restrict the income tax relief on pension contributions for individuals with a gross income of £150 000 or more. The income tax relief available will be tapered away gradually where an individual's gross income falls between £150 000 and £180 000 and will be restricted to the basic rate for income of...