The Retirement Benefits Schemes (Indexation of Earnings Cap) Order 1991
Section 59OC(1) of the Income and Corporation Taxes Act 1988 (“the Act”) provides that in arriving at an employee’s final remuneration for the purposes of section 590(3)(a) or (d) of the Act (conditions for approval of retirement benefit schemes), any excess over the permitted maximum figure (“the earnings cap”) for the year of assessment in which the employee’s participation in the scheme ceases shall be disregarded. Section 59OC(3) fixed the earnings cap for the years of assessment 1988-89 and 1989-90 at £60,000.