New arrangements for pensions contributions tax relief


28 / 09 / 2011

The Finance Act 2011 confirms the revised arrangements in respect of pension contribution tax relief. With effect from April 2011, the annual allowance (AA) has been reduced from £255,000 to £50,000 and from April 2012 the lifetime allowance (LTA) will be reduced from £1.8m to £1.5m. These changes may give rise to individual tax liabilities for members of the NHS Pension Scheme.

To help NHS organisations carry out local risk assessments to full assess the impact of the new arrangements on their organisation, the NHS Employers organisation has commissioned a series of illustrative graphs which act as a 'ready reckoner' tool.

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