MP and member of the Treasury Select Committee (TSC) Mark Garnier has warned abolishing the 25% tax-free lump sum on pension savings would be a mistake and make savers feel they have been cheated.
Garnier (pictured) told the BBC's Radio 4 Today Programme the Chancellor should give older people assurance by not changing current rules around pension taxation. He echoed a previous warning from the Institute for Fiscal Studies (IFS) that rushed changes to pension tax relief would cause problems with current pension savers. Any radical changes should not be made without a ten to 15-year advance notice, he said. The government has been consulting on radically reforming the way it awards tax relief on pension savings, possibly moving away from the current system of giving relief up...
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