Draft regulations have been laid before Parliament that will amend the tax charge from 6 April 2010 for new pension savings that breach the anti-forestalling provisions (see EPB bulletin 10 December 2009 and 30 April 2009 for background on the anti-forestalling provisions).

Currently the tax charge is 20%, but from 6 April 2010 it will be:

  • 20% in relation to pension contributions that receive relief at the basic rate of income tax (but do not exceed the higher rate relief); and
  • 30% in relation to pension contributions that receive relief at the higher rate of relief for income tax.

HM Revenue & Customs has also made a number of updates to its Revenue Pension Scheme Manual pages on the anti-forestalling provisions.