Pensions tax: Blueprint for change?

clock

Pensions minister Steve Webb is keen to see 30% tax relief on pensions and the end of the lifetime allowance. What would this mean if implemented? Fiona Murphy takes a closer look.

Could there be any more changes to pensions after that thriller of a Budget? Apparently so, according to comments made by pensions minister Steve Webb. Not content with reinventing the pensions wheel with the introduction of greater flexibility, Webb recently told the Daily Mail he would like to see a flat rate pension tax relief of 30%. He also confirmed he would like to see the lifetime allowance, which has been reduced in successive years, entirely scrapped. Webb told the Mail: "I'd like to see the benefits of pensions tax relief spread much more evenly. Most people get 20% relief;...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Pensions gender gap: A low-profile injustice that deserves more attention

Pensions gender gap: A low-profile injustice that deserves more attention

'Pensions are one of the few financial products where time is the single biggest driver of outcome'

Jessica Cook
clock 24 August 2026 • 4 min read
Advisers place focus on retirement support as providers lack 'meaningful' engagement

Advisers place focus on retirement support as providers lack 'meaningful' engagement

People’s Pension poll shows 54% of IFAs say providers struggle to create ‘meaningful’ engagement

Martin Richmond
clock 19 August 2026 • 3 min read
Pensioner poverty has risen for more than a decade, warns LCP

Pensioner poverty has risen for more than a decade, warns LCP

Single and divorced pensioners most affected and should be focus for future policy

Alex Levy
clock 18 August 2026 • 4 min read