McPhail fears Treasury to target basic pension allowance

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The basic pension contribution allowance could be the next target in the Government's plans to cut pension relief, according to Tom McPhail.

Hargreaves Lansdown head of pensions research says the tax loophole is an obvious target for a Government looking to raise income. Currently, those who do not pay tax can make a contribution of up to £2,880 a year and receive tax relief on it, grossing the money up to £3,600. However, the loophole is often used by the wealthy, who give money to a spouse or child who can then make a pension contribution and receive an additional £720. McPhail believes this loophole could soon be closed. "We have got a situation right now where the Government has no money to fund its projects, and ...

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