Annual allowance cut 'will punish' catch-up pension savers

A report in the Financial Times this morning revealed Chancellor George Osborne is considering raiding higher-rate tax relief for the rich by lowering the threshold of the tax-free annual allowance from £50,000 to £40,000 or £30,000. The compromise deal with the Liberal Democrats, who want cuts to higher-rate tax relief, could £600m to £1.8bn each year for the Treasury. However the pensions industry has expressed concerns this could penalise the savings of the middle-class and accelerate the closures of defined benefit schemes. Bestinvest MD Jason Hollands said the change could hit...