Implementing the restriction of pensions tax relief archive

At the 2009 Pre-Budget Report the Government launched a formal consultation on the implementation of the restriction of pensions tax relief and welcomes responses from interested parties.

The Exchequer Secretary opened an introductory event on 17 December 2009. She explained the policy background and reiterated the value of stakeholder engagement throughout the 12 week consultation.

At this event Mike Williams (Director, Personal Tax & Welfare Reform) gave an overview of the key issues addressed in the consultation document The implementation of the restriction of pensions tax relief, and stakeholders an opportunity to share initial views and questions on it.

The event marked the start of a proactive consultation period. Stuart Glassborow (Team Leader on Pensions Tax) outlined the process for engaging with stakeholders through workshops, events and bilateral meetings.

Workshops

19 January: Defined Benefit Schemes

Our workshop on Defined Benefit Schemes, held on 19 January 2010, at Church House, covered:

a run-through of the methods for valuing deemed contributions;
practical and technical questions on age-related factors; and
consideration of the administrative impacts of these methods.

22 January: Operation and Impacts

Our workshop on Operation and Impacts, held on 22 January 2010, at HM Treasury, covered:

determining and reporting income, contributions and recovery charges;
the draft clauses;
scheme pays approach; and
the impacts on individuals, employers and pension schemes.

5 February: Scheme Pays

A workshop on Scheme Pays held on Friday 5 February at HMRC/HMT, 1 Horseguards Road, London covered:

10 February: Edinburgh workshop

A workshop was help in Edinburgh on 10th February 2010 to discuss:

Defined Benefit Scheme
Operation and Impact
Discussion summary (PDF 106KB)

16 February: Draft legislation

A workshop was held on Tuesday 16th February 2010 to discuss Draft Legislation:

Discussion summary (PDF 77KB)

24 February: Delivery process

Our workshop on HMRC-HMT Delivery Process, held on 24th February 2010, at HMRC/HMT, covered:

Impact assessment presentation

The slides below provide some background summarising the content of the consultation stage Impact Assessment, and were used for reference during discussions on the impacts of implementing the restriction of pension tax relief.

Impact Assessment – Overview and key questions (PPT 147KB)

Defined Benefit (DB) technical group

A Defined Benefit technical group was convened to discuss further technical details of how an age-related factors (ARFs) valuation approach could be implemented.