Pension providers are seeing a rise in lump-sum contributions to retirement funds ahead of the Budget, amid concerns the Chancellor will push ahead with plans to cut higher rate tax relief.
The Chancellor is under pressure to reverse a planned cut in tax relief on pension contributions for high earners which would give them only basic-rate tax relief. From next April, tax relief is due to be clawed back once earnings top £150,000 and removed completely for those earning £180,000 or more. Prudential, the UK's biggest pension provider, says it has seen a significant increase in the number of people moving lump sums of new cash into their pensions in recent weeks. A spokesperson says: "We believe people are thinking they'll guarantee the tax relief on their contribution...
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