Con / Lib-Dem coalition: The impact on pensions

As part of the coalition deal signed yesterday, the Conservative and Liberal Democrats agreed to increase personal tax allowances from April 2011 to achieve a "long- term goal" of a £10,000 personal tax allowance. However, while the new government has yet to set out how it plans to pay for this promise, the Liberal Democrats' manifesto said it would fund this policy, in part, by giving tax relief on pensions only at the basic rate - a measure it calculated would raise £5.46bn a year in 2011-12 prices. The Conservatives made no manifesto pledges on pensions tax relief. Despite possi...