Election 2010: Lib Dems would scrap higher rate pension tax relief

The manifesto said a Liberal Democrat government would raise tax allowances so people would not have to pay any income tax on the first £10,000 of earnings. It said it would pay for this pledge with measures such as giving tax relief on pensions only at the basic rate - so that everyone gets the same tax relief on their pension contributions. The Liberal Democrats calculated this measure would raise £5.46bn a year in 2011-12 prices. In this year's Budget, Chancellor Alistair Darling confirmed the Government would limit higher rate tax relief on pension contributions for those earni...