Pre-Budget pension tax speculation 'damaging' client outcomes

Conjecture driving savers to withdraw ‘excessive funds’

Jenna Brown
clock • 3 min read

The chancellor’s move to shut down speculation on changes to higher-rate pension tax relief ahead of the upcoming Budget has been welcomed by experts who said conjecture was damaging to client outcomes.

According to a report in The Times, senior Treasury officials are understood to have told chancellor Rachel Reeves that a reduction of the 40% level of tax relief on higher earners would disproportionately hit individuals working for the state with relatively modest incomes Sources told the publication that reducing tax relief on pension contributions was no longer seen as an easy measure to raise revenue in the 30 October speech but other pension-related options remained in consideration. St James's Place (SJP) divisional director of retirement and holistic planning Claire Trott welc...

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 Pensions

Alltrust launches sophisticated investor SIPP

Alltrust launches sophisticated investor SIPP

For advisers and ‘advanced’ clients

Isabel Baxter
clock 02 March 2026 • 2 min read
FCA non-advised pension transfer plans branded 'anti-consumer'

FCA non-advised pension transfer plans branded 'anti-consumer'

AJ Bell blasts FCA’s plans as ‘worst kind of regulatory intervention’

Jenna Brown
clock 23 February 2026 • 3 min read
Advisers search for more than 100,000 pension transfers via Origo

Advisers search for more than 100,000 pension transfers via Origo

In first year

Isabel Baxter
clock 23 February 2026 • 1 min read