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Pensions – asset backed contributions

by Tax Faculty Team on 27.02.2012 14:22

The government tightens up the provisions announced last November

 

At the end of November, following a period of consultation in the summer, the Government announced legislation to be included in Finance Bill 2012 to prevent excessive tax relief being given to companies making asset backed contributions to their pension schemes. The cost of the ‘abuse’ was estimated at £450 m a year over each of the next five years.

 

The Government has decided that the original provisions were not completely effective and on 22 February published amended legislation and a Tax Information and Impact Note which was accompanied by a Ministerial Written Statement.