Chancellors possess fought shy of reforming a system in which higher-rate taxpayers benefit most. But £10bn could be savedPensions tax relief is a juicy morsel for the chancellor should he find a way to fabricate (to make up, invent) it benefit the exchequer. Even a small slice of the £38bn spent each year subsidising pension saving could help thousands of schools and hundreds of hospitals that would otherwise be starved of cash.
A £10bn saving is not outside the bounds of opportunity,and that is without even shaking the system to its foundations. All Philip Hammond needs to conclude in his autumn budget is take away the tax relief top-up offered to higher-rate taxpayers and the £10bn a year can be his.Tax reliefs share the same thinking, which is that people won’t conclude the right thing without a enormous bung from the stateContinue reading...
Source: theguardian.com