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...
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