CPS reiterates calls for scrapping of pension tax relief and LTA

Written by Michael Johnson

Victoria McKeever
clock • 2 min read

The Centre for Policy Studies (CPS) has renewed its calls for a scrapping of pension tax relief and the lifetime allowance, to encourage people to save more and reduce the cost to the Treasury.

The Pensions and Savings Manifesto, written by Michael Johnson (pictured), said income tax relief on pension contributions - that cost the Treasury £30.4bn in 2015/16 - should be replaced by a single 25% ‘bonus' on post-tax pension contributions. It also said the annual allowance should be reduced from £40,000 to £10,000, as both income tax relief and the allowance benefited only the wealthy. Meanwhile, scrapping the £1m lifetime allowance was seen as another "much-welcomed" simplification for pensions. The paper said the measures would simplify the savings arena: "Gone would be th...

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