Cost of pension tax relief rises to £27bn, HMRC figures reveal

The figures from HM Revenue & Customs show the estimated cost of income tax relief on pension contributions in the 2022-23 tax year is likely to be around £5bn higher than five years ago, and will now constitute around 1.1% of gross domestic product. Source: HMRC Non-structural tax relief statistics (January 2023), Section 7.15 According to Lane Clark and Peacock (LCP), the figures should be welcomed as evidence of the success of auto enrolment (AE), which has seen 10 million additional people enrolled into workplace pensions LCP added that the increase in the minimum mandatory...