Clause 173 - Personal pension arrangements: limit on contributions
Finance Bill
Public Bill Committees, 22 May 2003, 9:30 am
Mr Howard Flight (Arundel & South Downs, Conservative)
As I understand it, the clause results from a particular court case and is intended to put it beyond doubt that employer contributions for employees are subject to the pension earning cap. The clause also makes it clear that the facility to carry back contributions to a previous year is available only for contributions paid by the member who made the personal pension arrangement. I wish to ask the Economic Secretary the reason for the second element. In the round, we desperately need to encourage private pension saving, and I do not see any reason for the rule as a matter of principle.