HM Treasury announced on 14 October 200 the Annual Allowance will reduce from £255,000 to £50,000 from April 2011.
In addition, there is a new rule allowing carry forward of unused annual allowances from up to three previous tax years. In applying this rule, the annual allowance for 2008/9 to 2010/11 is assumed to be £50,000
The Treasury will consult on options enabling people to meet tax charges out of their pensions in November.
In addition, the Lifetime Allowance will reduce from £1.8 million to £1.5 million from April 2012.
If you would like to discuss the possible implications and opportunities for your pension our panel of approved advisers will be able to discuss this in detail with you.