Removing higher-rate tax relief for the well paid will undermine the A-Day agreement and sends out the wrong message on pension savings.
Industry figures have criticised the move to remove tax relief for those earning more than £150,000 from April 2011. From April 2011, high earners will only receive basic level tax relief on contributions, currently 20%. In addition, restrictions will be put in place today, limiting contributions to a 'normal' level, with any increase in pension contributions worth over £20,000 taxed at the new 45% rate. Standard Life predicts the changes will affect 291,000 pension savers in the UK. The ABI has criticised the move for increasing the administrative burden for pension schemes and ulti...
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