Reform of pensions tax relief research briefing published
29 April 2022
A briefing has been published online, which explores the current system of pension tax relief, while also considering the main options for future reform.
The document includes discussion regarding how pensions are currently taxed in the UK, the limits on pensions tax relief, how much it costs, who receives it and why pensions receive tax relief. There’s exploration of the various arrangements for administering pensions tax relief, and how the method used impacts different individuals.
Also covered are the topics of the impact of devolved rates of income tax on pensions tax relief, and discussion of the annual and lifetime allowances.
Finally, the different options for reform are considered, which include:
• a single rate of pensions tax relief
• taxing pension contributions
• capping the tax-free lumpsum
There’s also coverage of the 2015 Treasury consultation on reforming pension tax relief.
Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.