Claire Trott: Why flat-rate tax relief is not a pensions 'quick fix'

'On the surface, flat-rate tax relief is very appealing'

clock • 4 min read

Claire Trott looks at the knock-on effects of introducing flat-rate pension tax relief and, while she says it would benefit low earners, it would not be a 'quick fix' many think it would be...

Pensions tax relief is so often seen as an easy way for the government to save money and in the last year with spending so high, the issue has been raised multiple times. The most recent report in early March by the Treasury Committee again called for not just a review but an urgent reform. It stated the following: "Given the regressive nature of the benefits accruing to individuals from the current arrangements on pension tax relief, especially those in the top earnings decile, the Chancellor should urgently reform the entire approach to pension tax relief." The government has pushed...

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