Why the Chancellor should consider dual-system pensions tax relief

Announcement expected in the Budget

Jonathan Stapleton
clock • 2 min read

Speculation is growing the Chancellor will introduce a Pensions ISA on March 16 but could he decide to keep the old system as well? Jonathan Stapleton looks at the benefits of a dual-system approach.

There is increasing speculation the Chancellor is gravitating to a reform to pension taxation based on an ISA style system, where the tax relief is restricted to just basic rate, but withdrawals are tax free. But what would happen should the government decide to continue with two tax regimes - allowing people to both make contributions to a modified EET system (with a reduced annual allowance of £10,000) as well as introducing a Pensions ISA with an annual contribution limit of £10,000 for additional retirement saving? Such a dual-approach system could have significant advantages F...

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 Pensions

Why the real problems of the pensions dashboard are yet to start

Why the real problems of the pensions dashboard are yet to start

'Its aims seem not only less relevant but potentially problematic'

James Floyd
clock 23 June 2025 • 5 min read
Turning data into dialogue: Helping clients visualise retirement realities

Turning data into dialogue: Helping clients visualise retirement realities

'Data is more than just a collection of figures, it's a powerful tool for engagement'

Joshua Croft
clock 20 June 2025 • 3 min read
Average pension transfer took just 11 days at tax year-end

Average pension transfer took just 11 days at tax year-end

Origo says transfer times decreased around tax year-end with half taking seven days or less

Jasmine Urquhart
clock 17 June 2025 • 2 min read