HM Revenue & Customs (HMRC) has stated that the notional earning cap for 2009 – 2010 will be £123,600.

Before 6 April 2006 (A–day) the earning cap limited both contributions to and benefits payable from tax approved pension schemes.

Although the “earning cap” is not used in the post A-day tax regime it remains a feature of some pre-existing pension scheme rules. HMRC publishes the notional earning cap setting out what the earning cap would have been to help schemes with the transition from previous tax regime to the current regime