Few winners in potential pension tax relief reforms - research

Higher rate earners among those worst hit

clock • 2 min read

There are few winners from potential plans to reform pension tax relief, according to analysis from the Pensions and Lifetime Savings Association (PLSA).

The government has widely speculated that it will reform pension tax relief to support the cost of social care and provide more revenue to pay for pandemic support. The PLSA analysed how various people would be impacted by the four potential reform options. These include setting a flat rate of relief (potentially 20%, 25% or 30%) and TEE whereby pension contributions are taxed as a person's marginal rate of income but pension income and investment returns are exempt. The removal of higher rate tax relief would be of little benefit to the majority of basic rate income taxpayers, the PL...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Why good advice relies on asking difficult questions

Why good advice relies on asking difficult questions

Difficult questions a 'core feature' of good advice

Ahmed Bawa
clock 21 November 2025 • 4 min read
Advice firm revenues hit £6bn in 2024 but job numbers fall

Advice firm revenues hit £6bn in 2024 but job numbers fall

Retail investment adviser posts across all firms fell to 37,441

Isabel Baxter
clock 21 November 2025 • 2 min read
Feel Good Friday: Castlefield sponsors and takes part in annual sleepout

Feel Good Friday: Castlefield sponsors and takes part in annual sleepout

Event has raised £28,334 so far

Professional Adviser
clock 21 November 2025 • 1 min read