Rethink on pensions tax relief welcome

In today’s Budget statement the Chancellor said he would look at alternatives to restricting pensions tax relief for those earning over 150,000. Joanne Segars, NAPF Chief Executive, said:

“We are pleased the Chancellor has listened to our argument for a much simpler and more radical solution.

“The previous government’s proposals were a disaster in the making. They would have been very damaging to the pensions of all working people, not just the well-off.

“Reducing the amount that can be paid into a pension tax-free each year will protect the Treasury’s tax take, but will be much more supportive to pensions saving and less costly to implement.

“However, there is a lot of detail to be ironed out, and the level of the allowance is critical. We look forward to working with the Treasury to get the policy ready for implementation in April 2011.”