This presentation outlines the forthcoming changes to pension legislation which will take effect from 06/04/2011.

1. Pension Changes 2011

3. This merged 8 pension regimes going forward from 6th April 2006.

4. This left a legacy

5. It created a simple structure from 6th April 2006 with one regime?

6. E.g. Everyone now gets 25% tax free cash (PCLSP)

7. New contribution limits

8. Personal contributions are limited to:

9. 100% earnings or £255,000 for tax year 2010/2011

10. But anti forestalling regulations introduced from 29th April 2009

12. Lifetime Allowance planned to reduce to £1.5m from April 2012

13. Protection from the LTA charge will be put in place. You need to apply

14. Will remain until at least 2015/16

15. Tax relief NOT restricted to basic rate (40% & 50%)

16. New carry forward facility will be available for tax years back to 2008/09

17. The current approach to Pension Input periods will continue

18. Transitional rules will apply for PIPs starting in 2010/11 but ending in 2011/12

20. What is Carry Forward? Start the process by paying the maximum contribution in 2011/2012 Then mop up unused relief starting with 2008/2009 Pay the maximum contribution Go back 3 tax years

23. Go back to 2008/2009 to utilise unused relief

24. Then work forward from 2009/2010

25. Then move to 2010/2011Tax year 2010/2011 Tax year 2011/2012 Pension Input Period opened and closed Pension Input Period opened and closed PIP is closed 5th May 2012 £50,000 paid 6th May 2011 £50,000 paid 6th April 2011 PIP is closed 5th May 2011

26. Reclaiming the Personal Allowance – 60% relief Total Income £110,000 No pension contribution Total Income £110,000 £10,000 gross pension contribution £71,125 £56,125 Higher Rate Band Income Tax Liability: £6,475 x 0% = nil £47,400 x 20% = £9,480 £46,125 x 40% = £22,450 Total liability = £31,930 Basic rate tax relief at source = £2,000 Total tax relief: £35,930 - £31,930 + £2,000 = £6,000 Higher Rate Band Income Tax Liability: £1,475 x 0% = nil 37,400 x 20% = £7,480 £71,125 x 40% = £28,450 Total liability = £35,930 £47,400 £37,400 ExtendedBasic Rate Band Basic Rate Band Personal Allowance £6,475 Personal Allowance £1,475

28. Tax relief will be available at individual’s highest marginal rate

29. Unused annual allowances may be carried forward for up to 3 years

30. Save your personal allowance

31. Lifetime Allowance planned to reduce to £1.5m from April 2012

32. Protection from the LTA charge will be put in place

33. No longer a requirement to buy an annuity at age 75