Govt plans cutting tax relief on pension compensation

However, it warned the move may lead to increased costs for both pension investors and providers. In a consultation on abolishing 36 tax reliefs, launched on 27 May, the Treasury revealed plans to remove the exemption from capital gains and income tax on compensation from pensions mis-sold between 1988 and 1994. Around a million people were mis-sold personal pensions in the late 1980s, when occupational pensions were likely to be more suitable. Although tens of thousands of people have already received compensation, it is not known how many have yet to make a claim. The governme...