Hammond poised to implement 'nightmare' policy in budget, AJ Bell warns

To promote intergenerational fairness

Hannah Godfrey
clock • 2 min read

The government is allegedly planning to fund tax cuts for younger people by reducing the money spent on tax relief for older workers - a policy AJ Bell warned would be a "nightmare to implement".

According to The Telegraph, Hammond (pictured) is understood to be examining ways to link tax to age to promote intergenerational fairness in next month's Budget. The Telegraph claimed tax breaks would be offered to workers in their 20s and 30s, paid for by cutting reliefs for older and better off workers. AJ Bell senior analyst Tom Selby warned the idea would be "a nightmare to implement both practically and politically". He said: "On a practical level, 60% of pension tax relief is received on employer contributions, rather than individual contributions.  "So while it would be ...

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