Change in basic tax rate with effect from 6.4.08

The basic income tax rate has changed with effect from 6th April 2008, from 22% to 20%. Thus for each £100 gross contribution payable by the member, the net contribution will increase from £78 to £80.

The basic rate relief is still reclaimed by the pension provider, thus grossing up to the full £100, with any additional higher rate relief being reclaimed through the individual's annual tax return or allowance.