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Taxation

Volume 712: debated on Thursday 2 July 2009

Question

Asked by

To ask Her Majesty's Government what is their assessment of the opinion of the CBI that some taxpayers could face a marginal tax rate of 145 per cent as a result of the Finance Bill. [HL4585]

Section 35 of the Finance Bill introduces measures to prevent individuals from forestalling behaviour, ahead of the restriction of higher rate pensions tax relief for those with incomes of £150,000 or over from 2011-12. These measures are designed to protect individuals making regular (defined as quarterly or more) contributions into their pension. The example provided by the CBI would not arise under these provisions since such increases in a final salary scheme would be treated as protected pension inputs.