RSA report reignites debate over flat-rate tax relief reform

30% flat rate of tax relief proposed

Jonathan Stapleton
clock • 5 min read

The Royal Society of Arts (RSA) has reignited the debate on the introduction of flat-rate pensions tax relief - saying a 30% flat rate would be progressive, cost-neutral and leave three-quarters of earners better off.

In a report, Venturing to Retire, published in partnership with e-commerce marketplace Etsy - the think tank said 40% of government spending on pension relief goes to the top 10% of those claiming relief. It said this is "deeply disproportionate" - and means that, while pensions tax relief costs HM Treasury £30.5m a year, £11.8bn is spent on people earning more than £70,000. The RSA called for a 30% flat rate to boost the pension pots and individual saving incentives for basic rate taxpayers - a policy change that has long been championed for by former pensions minister Steve Webb. ...

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

King's Speech has limited impact on pensions

King's Speech has limited impact on pensions

Pensions UK says there may be pension implications from other aspects of the legislative programme

Jonathan Stapleton
clock 13 May 2026 • 1 min read
Pensions and divorce: Where advisers can add the most value

Pensions and divorce: Where advisers can add the most value

'A pension is not simply another line on a balance sheet'

Tim Latham
clock 12 May 2026 • 4 min read
'A paralysis of the UK pension system' - The reality of transfer delays

'A paralysis of the UK pension system' - The reality of transfer delays

Provider ‘stalling’ causing tense SASS client case

Isabel Baxter
clock 12 May 2026 • 6 min read