Will Osborne's flat-rate tax gamble pay off? Advisers weigh in

Is flat-rate tax relief the right way to go?

clock • 2 min read

News that the Chancellor will implement a ‘flat-rate' tax relief of between 25% and 33% on pensions have been described as a ‘gamble' and too vague' by industry experts.

George Osborne is working towards announcing the single relief plan at the March Budget, people close to the Treasury have reportedly said. Advisers are split on the proposals. Managing director of advice firm Derbyshire Booth, Greg Heath, said that although the change will encourage lower earners to save, as their incentive increases from 20%, higher earners that currently benefit from 40% tax relief are likely to look at alternative investment vehicles. "The change will make pensions less viable to high earners and they currently subsidize the industry. Osborne is clearly looking...

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