HMRC considers pensions tax move

HM Revenue and Customs (HMRC) is considering whether to allow tax payments to be taken directly from the personal pensions of high earners who have exceeded their annual contribution limit.

The measures, which have already been looked at in relation to occupational pensions, would enable HMRC to take charges from a person's pension provider.

It comes after two respondents to a consultation focusing on the measures for occupational pensions suggested making the equivalent provision for members of a contracted-based scheme.

The Department for Work and Pensions is consulting on proposals to reduce the pension benefit provided to those in an occupational scheme who exceed the £50,000 contribution limit for 2011/12 to cover their tax bill.