Pension tax relief change could spark ISA boom

Twice as many over 55s would favour an ISA

clock • 2 min read

ISAs could be the big winner over pensions if the Chancellor uses the Budget to overhaul the tax relief regime, research has claimed.

Data from True Potential found a third of savers would switch savings contributions to an ISA if the government made significant changes.  It added one in five would continue to save into a pension at the same level if higher rate tax relief was cut. Others said they would choose alternative investments, including property.  The government is currently considering changing the way it taxes pension contributions. At present, an exempt, exempt, taxed (EET) system is in operation. It is thought the government is keen to cut its multi-billion pound taxation bill and is looking to shift...

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