The cost of collecting the proposed high earner's pension tax would almost cancel out any gains to the public coffers, according to analysis by Standard Life.
From April 2011, the Government hopes to raise an extra £3.6bn a year, partly through cutting the tax relief on pension contributions for people earning over £150,000. People with gross pay of just £130,000 could be hit if the benefit of their employers' contributions pushes them above a proposed £150,000 limit. But Standard Life says implementing the tax, which will hit around 300,000 people, will cost around £2.5bn. This is seven times higher than Treasury calculations which put estimate the figure at the £345m mark. The insurer says the Treasury figures fail to account for major...
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