Feb 19, 2020

UK Tax Raid: The Government is planning a pensions tax raid – but a 'final salary' problem means it won't work

By Jessica Beard, PENSIONS REPORTER 19 February 2020 • 7:00am

The Government's plan to reform pension tax relief could be cut short by the “inevitable” problems it would create for businesses that offer gold-plated final salary pensions.
A fresh round of changes to tax relief could cause disaster for private sector pensions, experts have warned.
Boris Johnson and new Chancellor Rishi Sunak are considering plans to cut pension tax relief for higher earners in the upcoming Budget, which has been confirmed for March 11.
The changes – which would hit anyone earning more than £50,000 a year with a 20pc or 25pc charge on their pensions – was first proposed by Sajid Javid but has not been ruled out since his exit from Number 11.
However, any raid on pension tax relief would put further pressure on businesses that still run final salary, or defined benefit (DB), schemes....

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