DWP and Treasury mull further tax relief restrictions to fund Citizen's Pension

Speaking at the Henry Stewart conference on self-invested pensions last week, Centre for Policy Studies research fellow Michael Johnson said he had tabled the idea for a "progressive removal" of tax relief beginning with the removal of higher rate tax relief. He said such a move would save about £7bn a year but would act as a disincentive for higher earners to contribute to pensions so would be tempered by also limiting income tax in retirement to 20% - resulting in a saving of some £5.6bn per year. According to Johnson the next step would be to move towards a more ISA-like framework ...