Neil MacGillivray: Flat-rate tax relief raises its head once more

More complexity awaits

clock • 3 min read

With rumours of flat-rate tax relief circulating once again, Neil MacGillivray suggests advisers might want to bring up the subject with clients who are in a position to make further contributions ahead of the Budget

It is probably more than two years since the subject of flat-rate tax relief on pension contributions seriously reared its head, but the Treasury Select Committee has the put the topic very much back on the agenda in its report on Household Finances, published on 26 July. A change to tax relief is portrayed as a means of incentivising the majority to save for retirement, rather than just higher and additional rate taxpayers. With 52% of all relief paid going to individuals earning more than £50,000, it is difficult to challenge the thinking behind a fairer distribution. Auto-enrolment...

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