Budget 2012: Contracting out of defined contribution pension schemes

The government will amend pensions tax legislation in the Finance Bill 2013 to remove references to tax relief on employee contracted-out contributions to defined contribution pension schemes.

This will align tax legislation with the Department of Work and Pensions (DWP) legislation, under which contracting out through a defined contribution (DC) pension scheme will be abolished from 6 April 2012.

Read more benefits news stories from the Budget 2012