Press Release: Direct taxation: The European Commission takes steps against the United Kingdom as regards the deductibility of cross-border pension contributions

The European Commission formally requested the United Kingdom to amend its legislation which in certain circumstances denies deductibility of pension contributions paid to pension funds established outside the United Kingdom. The request took the form of a reasoned opinion (second step of the infringement procedure of Article 226 of the EC Treaty). If no satisfactory reaction to the reasoned opinion is received within two months, the Commission may decide to refer the matter to the Court of Justice of the European Communities.