Cost of pension tax relief stabilises

The latest figures from HM Revenue & Customs (HMRC), however, saw income tax relief on self-employed pension contributions remain at £700m in 2016/17 - barely half the level of that in 2007/08 (£1.3bn). More than half (£23.1bn) the cost of tax relief was in respect of contributions made by employers. Royal London director of policy Steve Webb (pictured) said: "Successive Chancellors have viewed pension tax relief as a ‘honey pot', convenient to dip into whenever they are short of money. But pensions should be a long-term business, and six cuts in the last seven years simply undermines...