Warning sounded on 'overnight' pension tax relief change

Could the Budget bring quick changes?

Carmen Reichman
clock • 4 min read

The Chancellor could be poised to make any changes to pension tax relief with immediate effect as he seeks to avoid a ‘stampede' of tax-free pension top-ups, the industry has warned.

The Chancellor is expected to outline his views on future pension taxation in next month's Budget, which could include a radical change of the system. Pension provider Mattioli Woods suggested there was a "reasonable possibility" some changes would be made overnight as people would find ways to control their contributions to avoid a future tax charge if they were given a period of grace. This in turn meant less tax for the Treasury. Sales and marketing director Murray Smith said his firm was nudging people towards maximising their tax-free contributions ahead of the 16 March Budget to...

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