Treasury enjoys extra £400m pension tax windfall

Almost 50% more than expected

Hannah Godfrey
clock • 1 min read

The Treasury will net an extra £400m as a result of people paying tax on their retirement withdrawals, according to the Office for Budget Responsibility's (OBR) fiscal outlook.

The document, which was published alongside the Budget, revealed a significant upgrade in the estimated pension freedoms tax take for 2018/19. Based on the Spring Budget 2017 costings, which factored in a tax take of £900,000m in 2018/19, Monday's figures suggested a near 50% increase in revenue raised from the pension freedoms this year to £1.3bn, taking the grand total generated in tax by the policy to £5.5bn. AJ Bell senior analyst Tom Selby said: "The whopping £13bn cut in the OBR's borrowing forecast for this year wasn't the only windfall to land in the chancellor's pocket yester...

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