Is pension tax relief working?

Pension tax relief has been back in the spotlight of late, unsurprisingly with party conference season almost upon us. Recently, the Liberal Democrats proposed an even more radical slash of the limits. In a report, the party proposed cutting the lifetime allowance from £1.25m to £1m. If anything this is a softening of the party's stance. A consultation in February proposed cutting the tax-free lump sum, reducing the annual allowance to £30,000 and looked at NI charges for employer contributions. The pensions industry has long-argued that tax relief is perhaps the foremost attractiv...