01: The current pensions tax regime

Key changes to the tax rules were introduced on 6 April 2006 (known as A-Day). The aim of the reform was to ‘simplify’ the pension tax rules. However, in the years since A-Day the pension tax regime has grown increasingly complex as a raft of amendments have been made. Further changes are in the wings from April 2012.

This briefing is designed to explain the tax regime as it now exists. It is important to obtain specialist advice about your pensions strategy whether you are an employer, an employee or you are self-employed.

The 2006 changes and subsequent modifications establish how much can be contributed to pensions, the limits on the benefits that can be withdrawn from them and how those benefits can be taken. They generally apply to all pension schemes regardless of when they were set up.Last Updated