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

Government again rejects Waspi compensation after review

Government again rejects Waspi compensation after review

DWP: Creation of compensation scheme would be ‘highly impractical’ and ‘time-consuming’

Martin Richmond
clock 29 January 2026 • 3 min read
Pension transfers and the FCA: A well-meaning intervention that risks falling short

Pension transfers and the FCA: A well-meaning intervention that risks falling short

'The secret is giving people the right information at the right time'

Rachel Vahey
clock 28 January 2026 • 4 min read
State pension deferrals: 42,000 who postponed took benefit in 2023/24

State pension deferrals: 42,000 who postponed took benefit in 2023/24

FoI request from provider Royal London

Jenna Brown
clock 28 January 2026 • 3 min read