Former pensions minister Steve Webb and industry expert David Harrison debate the chancellor’s decision to axe reforms to pensions tax reliefAfter weeks of speculation that the chancellor was planning tall changes to the tax relief on pensions in the forthcoming budget,on Friday the Treasury ruled out any immediate reforms.
Currently, when savers pay into a scheme their contributions are boosted by tax relief at the rate they pay on their earnings, and which can be as much as 45%. Figures from the government indicate more than two-thirds of pensions tax relief goes to 40% and 45% rate taxpayers.
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Source: theguardian.com