Labour scrapping higher rate pensions tax relief is 'politically unlikely'

In recent analysis, the firm examined the potential for changes to pension tax relief as part of the 30 October budget.  An LCP paper pointed out that with the Labour manifesto pledge not to raise rates of income tax, National Insurance (NI), VAT and corporation tax, the chancellor is likely to be taking a keen interest in pension tax relief – with a net annual cost estimated by the Treasury at around £48bn. However, LCP argued that introducing ‘flat rate' tax relief (i.e. scrapping higher rate relief) – though potentially lucrative – is highly unlikely politically.  "This is espec...