2011 pensions tax regime: what the consultation paper reveals

The consultation paper on the 2011 tax regime for pensions has been published. The consultation includes much of what was expected, together with a change that will broaden significantly the impact of the measures. Whether a person is caught by the new rules depends on their income level and the Government has decided that the definition of income, for this purpose, is to include the value of employer pension contributions. The Government now expects the measures to affect about 300,000 people, an increase of 30% on its original estimate of 230,000.