Pensions Earnings Cap and the Transitional Period - Pensions cap figure for 2008/09 announced

View the previous news item for Pension Schemes

21 February 2008

Pension scheme trustees may continue to use the pensions earnings cap, which officially ceased to exist from 6 April 2006, for the purpose of restricting pension payments from a registered pension scheme for a transitional period. The transitional period ends on the earlier of

• the date from which the pension scheme rules are changed so that the existing limits no longer apply, and
  
  
• the end of the 2010/11 tax year.

Although the earnings cap, fixed at £105,600 for 2004/05, has not been increased in legislation since April 2006, HMRC continue to review it annually for these transitional purposes. The notional value of the pensions earnings cap is increased from £112,800 for 2007/08 to £117,600 for 2008/09.

...UK Payroll News - Latest

Further information:
Notional Earnings Cap
Notional Earnings Cap 2008/09

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