Pru: Expect further cuts to pension annual allowance

Prudential said the scope of the annual pension tax relief will likely be reduced as more and more people enter the system through auto-enrolment, effectively creating a tax gap. The freezing of income tax thresholds will further contribute to the tax gap as new higher-rate tax payers continue to make use of exemptions when making contributions, it added. This means that HM Revenue & Customs (HMRC) will likely be looking at reducing the impact of the relief scheme on its coffers, with lowering the annual tax-free allowance being the easiest option, the insurer suggested. Head of bu...