Hargreaves predicts massive cut in pension tax breaks

The Treasury is due to reveal its decision on reforming pension tax relief later in the week following a lengthy industry consultation. Hargreaves predicts the annual allowance will be reduced from £255,000 to £40,000, rather than the possible £30,000 suggested in the consultation. The firm also anticipates a reduction in the lifetime allowance from £1.8m to £1.5m. There may also be changes to the rule that the annual allowance does not apply to employer contributions in the final year of work. Head of pensions research at Hargreaves Lansdown Tom McPhail says Treasury officials ...