The Chancellor's decision to cut tax relief on high earners' pension contributions was "regressive" and the change puts catch up savers at a disadvantage, Rowanmoor's Robert Graves has said.
The chancellor used his Autumn Statement to cut the annual allowance back from £50,000 to £40,000. It stood at £225,000 just 18 months ago. The lifetime allowance was also reduced from £1.5m to £1.25m. Rowanmoor head of technical Robert Graves said the latest decision was regressive and would put savers in a worse position than they were before A-Day, in 2006, when the regime was originally simplified. He explained the earnings cap previous in place pre-2006 does not properly equate with the annual and lifetime limits currently enforceable under government rules and savers today were ...
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