Chancellor to favour pension ISA in tax relief overhaul

Will announce tax relief changes in Budget

clock • 2 min read

Chancellor George Osborne is thought to be favouring ISA-style pensions in his plan to overhaul the tax relief system.

The Chancellor (pictured) has been consulting on various options for the future design of the pension system but is said to now be arguing the case for the pensions ISA scheme where the tax relief is restricted to basic rate, according to a report in the Telegraph. Pension experts warned the move would run into a number of difficulties and was set to "lose investors billions of pounds" in pension tax relief. The government has been consulting on new options for awarding pensions tax relief over the past few months in an attempt to cut the £35bn tax relief budget. Changing the curre...

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

HMRC updates on information sharing for IHT on pensions

HMRC updates on information sharing for IHT on pensions

Second technical note

Alex Levy
clock 01 September 2026 • 2 min read
Pension first or last? What the numbers really tell us

Pension first or last? What the numbers really tell us

'Focusing solely on reducing the pension before death can increase lifetime tax'

Joshua Croft
clock 28 August 2026 • 4 min read
IHT on pensions: New thinking on taking income in retirement?

IHT on pensions: New thinking on taking income in retirement?

‘This has undoubtedly had a huge impact on planning for many clients’

Lisa Webster
clock 26 August 2026 • 3 min read