Chancellor scraps pension tax relief overhaul

Reforms put on hold after months of speculation

Jenna Towler
clock • 3 min read

Chancellor George Osborne's decision to shelve the planned overhaul of pension tax relief has been backed by industry experts.

A Treasury source told the BBC it was "not the right time" to make changes.  The Financial Times said backlash from Tory MPs was also a factor in the decision. The government was considering making widespread changes to pension tax relief with an announcement expected in the Budget on 16 March. Last year, it released its Strengthening the incentive to save consultation on the issue asking for industry feedback.  A pension ISA - where contributions would have been taxed but withdrawals tax-free - was under consideration. As was a shift to a flat-rate tax relief system. However...

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

Gender pensions gap grows to £113,000

Gender pensions gap grows to £113,000

Report finds more than a third of women are likely to face poverty in retirement

Martin Richmond
clock 18 November 2025 • 3 min read
The FOMO-fuelled run on the pensions bank – where the Treasury is the only winner

The FOMO-fuelled run on the pensions bank – where the Treasury is the only winner

'You can't build a savings culture on a foundation of uncertainty'

Matt Storey
clock 17 November 2025 • 5 min read
Chancellor's potential salary sacrifice plan: A 'high risk gamble built on low quality data'

Chancellor's potential salary sacrifice plan: A 'high risk gamble built on low quality data'

Govt reportedly considering introducing a £2,000 salary sacrifice annual cap

Joseph Warne
clock 14 November 2025 • 4 min read