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Britain's middle classes are a sigh of relief this week after the Government released the pension proposals that will still allow most people take advantage of tax relief on their pensions.

Experts feared that half a million people would be affected by the reforms, but Tom McPhail, a Hargreaves Lansdown pensions adviser said that the Government has shown "pendue surprising of touch" with the regime, the Treasury Board believes will affect the 100,000 personnes.Cependant, some experts say the final hit number will be higher.

Tax relief on pensions will be limited to ￡ 50,000 per year, down sharply with the current ceiling, which is five times the contributions.However, there were suggestions that the limit would be more of ￡ 30,000 per year, which would have affected many relatively modest income had many years of service with their employer.

Rate taxpayers will also be able to keep tax breaks to the higher rate on up to the limit of ￡ 50,000 pension contributions it was afraid that the Government would limit tax relief 20pc for everyone.

People can now save ￡ 255 000 per year in their diet and get always relief on their contributions to the speed at which they pay tax on the revenu.Experts urges those who are likely to be affected by changes to this year as much as possible in their pensions.

"We tell our customers that they have six months to make a substantial contribution", said Carl McColgan Ashcourt Rowan, a wealth management company. Stated that tax change would be a brake for entrepreneurs and others who traditionally wait until the last year before retirement for large sums of money in their pension.Toutefois proposals allow unused allowance for three years to carry forward and offset against excess contributions, which should help those with peaks and troughs of their income.

The maximum retirement pension pot size before applicable tax rates is also cut off, from ￡ 1.8 m ￡ 1.5 Mr. Tim Bestinvest Stalkartt said that this cut is a "problem". "Although ￡ 1.""sounds like many Silver 5 m, actually kind of pension they buy once the investor has taken 25pc tax-free cash is worrying low," he said. The annuity can be purchased with this level of retirement savings provide an income of over ￡ 2,000 a month, he said.

Changes in pension replaces a system proposed by the previous Government to save ￡ 4 per année.Ces proposals would have a limited tax relief on contributions to the people who earn more than ￡ 150,000 and had been criticized by experts of the pension to be too complicated.

However, consultants has warned that the annual limit may hit with the tax if they have received an increase in salary because of how pension bills final salary schemes members which the benefits are evaluated. so far, their contribution is deemed to be the increase in annual pension multiplied by 10.Cependant benefits, this factor will be raised from 10 to 16, which facilitates the exceed annuelle.Gens on as low as ￡ 60,000 could be affected earnings allowance depending on how long they have been a member of their final salary scheme.

Raj Mody accountants PricewaterhouseCoopers said that change encourage businesses even more to stop funding for final salary schemes. ""It is difficult to see how these plans would progress in their current form", he said.

For people who are already on to have a pension pot just over ￡ 1.5 m threshold, proposals suggest that the transitional rules are put in place, but they will be subjected to greater scrutiny.

Mary Stewart of Hornbuckle Mitchell, a specialist in retirement, said that proposals prohibited practice top up savings with redundancy sums in the year of the said retraite.Elle that would now be authorized only if the owner of the pension pot has a disease very serious and it was waiting to be served very carefully to prevent abuse policy.

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