Date posted: 01/11/2010
Audience: HR staff dealing with pay policy, recruitment and departures for senior staff
Action: To make sure that appropriate HR staff are aware of the changes, and the enclosed ‘Briefing for Civil Servants’, in case of queries
- Cabinet Office has issued a note to HR Directors advising them of changes to the pensions tax relief provisions. (see text at Annex A)
- The note encloses a ‘Briefing Note for Civil Servants’ (Annex B) and asks HR Directors to make this available to staff, and bring it to the attention of senior staff.
- The reduced tax relief should only affect a minority of staff, HM Treasury estimate that 80% of those who will be affected will earn over £100,000 a year.
- Where the annual allowance tax does apply, it can be mitigated by a three-year carry-forward provision.
- Tax is an individual responsibility and these tax charges are administered through Self Assessment to HM Revenue and Customs, who have produced comprehensive guidance for individuals on their website, www.hmrc.gov.uk/pensionschemes
- We will put the enclosed Briefing note on a Pensions and Tax page on the Civil Service Pensions’ website, together with links to the HMRC site.
- My Civil Service Pension will issue further guidance about responsibilities for data updates for the provision of new Annual Allowance statements over the next year.
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