2009 UK Budget - note for high earners UPDATED December 2009

In the 2009 UK budget, delivered on 22 April, the Chancellor announced some changes to the tax relief available on pension savings. Further changes were announced in the pre Budget report on 9 December 2009. While some of the legislation setting out these changes has not yet been finalised, you may be affected if your total income from all sources (not just your Unilever earnings) is £130,000 or more per year (reduced from £150,000 a year in the pre Budget report).

The changes proposed in the Budget include:

• a proposal to abolish higher-rate tax relief on all pension contributions from 6 April 2011; and
• a new tax charge – which took effect from 22 April 2009 – designed to catch people who might otherwise have taken advantage of the existing higher-rate tax relief by increasing their pensions savings now, before the new tax regime comes in.

We have produced a leaflet giving further information about the changes. If you think you may be affected, you can download the leaflet 2009 Budget announcement - New tax on pensions for high earners.