Warning on inflation link for pension tax relief cut

Draft legislation, due to be fast-tracked through Parliament this week, makes no requirements for index-linking on pension tax relief limits. Under the legislation, those earning over £130,000 will see their pension tax relief tapered down, but without any link to inflation the number of people affected is set to grow. Towers Watson says those currently earning £100,000 will start paying tax on their pension contributions by 2020 if the law does not take account of inflation. While the bill gives the Treasury the power to increase income thresholds, there is no guarantee they will ...