'ISA pensions' could reduce the deficit by £10bn a year

Jonathan Stapleton
clock •

A shift from an 'EET' to a ‘TEE' tax system could save the government £10bn a year, academic Michael Johnson has said.

In a briefing note published by the Centre for Policy Studies on 3 July, Johnson urged the government to switch from the current pensions tax system, where contributions and investment income are exempt from tax and only the benefits are taxed (EET), to a new system where contributions are taxable but investment income and benefits are exempt (TEE). This comes as Chancellor Geroge Osborne used his Summer Budget to launch a consultation to look at whether there is a case for reforming pensions tax relief. Johnson said that replacing current support for occupational pensions with a Work...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Budget Media Watch: Healey to raise tax-free allowance for low-income state pensioners

Budget Media Watch: Healey to raise tax-free allowance for low-income state pensioners

Not expected to tinker with tax-free lump sum

Jen Frost
clock 26 October 2026 • 2 min read
Mind the gap: Why advisers have a key role in closing the gender pension divide

Mind the gap: Why advisers have a key role in closing the gender pension divide

'While access to pensions has improved, barriers remain'

Julia Peake
clock 22 October 2026 • 5 min read
Planning points: Paying pension funds to charity on death

Planning points: Paying pension funds to charity on death

IHT on pensions may create opportunities for charitable giving

Martin Jones
clock 16 October 2026 • 3 min read