Tax rises are expected and there has been abundant speculation that some of these will alter the tax treatment of income saved through pensions. The Government has now indicated that one commonly proposed change – ending 40% tax relief on pension contributions - is unlikely. Other options have been left on the table, though not everything that has been talked about will happen.
Before the Budget, our Looking Ahead series looks at how income saved for retirement through a pension is currently taxed and explores why changing it is “easier said than done”. We look at changes the Chancellor might have considered - from tax relief when money goes into a pension to tax-free lump sums on the way out, from National Insurance relief to taxes on bequeathed pots.
After the Budget, we will add our take on the measures that have been proposed.
