Pension Tax Relief

Pensions have always been and still are the most tax-efficient form of investment, but limits on contributions and total savings have been reduced dramatically.

A major part of the reason is that higher rate tax relief on pension contributions is costing the Exchequer £38 billion annually and questions remain as to how long the government can continue to ignore calls for the standardisation of relief at a lower level, perhaps 30%.

It was chancellor George Osborne who initiated research into the issue and insiders report that the Treasury has a large file the conclusions from which would enable it to act at fairly short notice.

For the time being, pre-occupation with the fallout from Brexit is likely to delay reform, but the writing is on the wall and as ever the clear message is to take full advantage of existing reliefs while they are available.

Share this post

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email

This website uses cookies to ensure you get the best experience on our website.

Pension Tax Relief

Pensions have always been and still are the most tax-efficient form of investment, but limits on contributions and total savings have been reduced dramatically.

A major part of the reason is that higher rate tax relief on pension contributions is costing the Exchequer £38 billion annually and questions remain as to how long the government can continue to ignore calls for the standardisation of relief at a lower level, perhaps 30%.

It was chancellor George Osborne who initiated research into the issue and insiders report that the Treasury has a large file the conclusions from which would enable it to act at fairly short notice.

For the time being, pre-occupation with the fallout from Brexit is likely to delay reform, but the writing is on the wall and as ever the clear message is to take full advantage of existing reliefs while they are available.