Employer contributions not subject to anti-forestalling

Wednesday's Pre-Budget Report revealed employer contributions for high earners would see a reduction in tax relief to the basic 20% rate, but it was not clear if the measure would affect temporary anti-forestalling rules. AJ Bell says it has been in contact with HMRC and confirmed employer contributions will not be taken into consideration until 2011, when higher rate tax relief is fully withdrawn. Chief executive Andy Bell says: "The difference between the pre and post 6th April 2011 rules will create an arbitrage opportunity. "Pension savers will still need to be careful that the...