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...

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