A tax grab is on the way, the government has warned, and savers’ pensions are expected to be on the chancellor’s hitlist.
Rachel Reeves is said to be considering a raid on savers’ pensions in next month’s budget as she comes under pressure to take away perks for wealthier savers, including tax relief for higher earners and inheritance tax exemptions on retirement pots. We look at four ways the government could take aim at your pension.
When you pay into a pension you get tax relief on your contributions at your income tax rate, either through a workplace pension where your contributions are taken from your gross salary before tax, or, with a personal pension, through a government top-up. A 20 per cent basic rate