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

Alltrust launches sophisticated investor SIPP

Alltrust launches sophisticated investor SIPP

For advisers and ‘advanced’ clients

Isabel Baxter
clock 02 March 2026 • 2 min read
FCA non-advised pension transfer plans branded 'anti-consumer'

FCA non-advised pension transfer plans branded 'anti-consumer'

AJ Bell blasts FCA’s plans as ‘worst kind of regulatory intervention’

Jenna Brown
clock 23 February 2026 • 3 min read
Advisers search for more than 100,000 pension transfers via Origo

Advisers search for more than 100,000 pension transfers via Origo

In first year

Isabel Baxter
clock 23 February 2026 • 1 min read