Few winners in potential pension tax relief reforms - research

Higher rate earners among those worst hit

clock • 2 min read

There are few winners from potential plans to reform pension tax relief, according to analysis from the Pensions and Lifetime Savings Association (PLSA).

The government has widely speculated that it will reform pension tax relief to support the cost of social care and provide more revenue to pay for pandemic support. The PLSA analysed how various people would be impacted by the four potential reform options. These include setting a flat rate of relief (potentially 20%, 25% or 30%) and TEE whereby pension contributions are taxed as a person's marginal rate of income but pension income and investment returns are exempt. The removal of higher rate tax relief would be of little benefit to the majority of basic rate income taxpayers, the PL...

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 Your profession

Why wellbeing is integral to financial planning

Why wellbeing is integral to financial planning

First Wealth founder and managing director Anthony Villis

Isabel Baxter
clock 25 September 2026 • 1 min read
Talking to each other is the best way to boost financial confidence

Talking to each other is the best way to boost financial confidence

'There's a permission problem'

Sophie Hall
clock 25 September 2026 • 3 min read
Feel Good Friday: Royal London partners with disabled racing driver on equality initiative

Feel Good Friday: Royal London partners with disabled racing driver on equality initiative

Working with Nicolas Hamilton, younger brother of F1 champion Lewis

Professional Adviser
clock 25 September 2026 • 1 min read