Pensions tax relief changes – legacy of Gordon Brown’s pension raid should be a warning to the new Chancellor
Removing higher rate tax relief from pensions is a lose-lose proposition which helps nobody and hurts millions. Reforming pension incentives is enormously complicated and Treasury should beware of unintended consequences. Recent changes to Pension Allowances designed to reduce pension tax relief for higher earners fuelled an NHS crisis, showing the dangers of chasing political headlines and short-term cost saving. Government should not be undermining saving incentives when debt is already at record levels. Any reform of tax relief should improve…