The Government believes that few individuals will incur tax charges as a result of exceeding the annual allowance for tax-privileged pension saving, said Mark Hoban, Financial Secretary to the Treasury.
But it recognises that large charges could occur ‘in some exceptional cases’, typically of long-serving individuals in defined benefit schemes.
‘These charges reflect a significant uplift in pension value in a given year, Hoban said. A new discussion document will consider ‘options to meet high annual allowances charges’, and draft clauses on the chosen approach will be published by February 2011.
The Government believes that few individuals will incur tax charges as a result of exceeding the annual allowance for tax-privileged pension saving, said Mark Hoban, Financial Secretary to the Treasury.
But it recognises that large charges could occur ‘in some exceptional cases’, typically of long-serving individuals in defined benefit schemes.
‘These charges reflect a significant uplift in pension value in a given year, Hoban said. A new discussion document will consider ‘options to meet high annual allowances charges’, and draft clauses on the chosen approach will be published by February 2011.
