Budget: Tax relief on pensions to drop in April

This year’s Budget shows tax relief for net payments to personal and stakeholder pensions will fall by £20 after April. Currently savers pay £780 and receive £220 in tax relief from the Government if they want to pay £1,000 into their pension. However, they will need to pay £800 after April, for which they will receive £200 in tax relief. This will also affect members of occupational pension schemes. Basic rate taxpayers will receive 20% tax relief, meaning a reduction in take home pay or less money going into the pension. Andrew Tully, senior pensions policy manager at Standard Life, sa...