More pre-Budget rumours of changes to pension tax relief

More pre-Budget rumours of changes to pension tax relief

The prospect of a flat rate of tax relief on pension contributions has resurfaced in the national press. The cost of pension relief has been chipped back in recent years, mainly by reducing the annual allowance. However, a report in The Times in early July suggested the Treasury is looking at flat rate tax relief, which would give the same rate of tax relief on contributions, regardless of personal income tax rates. The Times reported a flat rate of 25% is being considered, meaning a gross pension contribution of £100 would require a net outlay of £75 instead if the current £80….