It is not yet clear how the proposed withdrawal of higher rate pension relief will work from April 2011, but take at face value the Budget Notice statement “ higher rate relief will be tapered away for income between £150,000 to £180,000” and you end up with some truly awful marginal rates for anyone making pension contributions with income at this level.
An individual earning £150,000 and making pension contributions of £15,000 would receive f...