Pension tax consultation 'costs Treasury £1.5bn' in extra relief

Additional contributions have poured into pensions

Jenna Towler
clock • 4 min read

People scrambling to make additional pension contributions ahead of planned changes to tax relief rules have left the Treasury with an additional £1.5bn bill, according to AJ Bell.

The platform and self-invested personal pension provider said the government will now hand out an extra £1.5bn in additional pension tax relief despite scrapping its plans. On Saturday, it was widely reported Chancellor George Osborne had abandoned plans to overhaul pension tax relief rules. He used his July Budget to launch a consultation on the issue and it was predicted he would use his upcoming 16 March speech to announce his intentions. However, Treasury sources said over the weekend it was "not the right time" for widespread changes. Division among Tory MPs was reported in natio...

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