MSE Poll: Should pension tax relief be halved to 20% for higher earners?
Poll started 17 October 2017
Should pension tax relief be halved to 20% for higher earners?
Pensions are a powerful tax break – allowing and encouraging people to save for retirement from PRE-TAX salary – at a cost to the Treasury of an estimated £35bn/yr. In simple terms…
For each £100 saved it only costs a…
- Basic 20% rate taxpayer (salaries c. £11,500+) £80 from their pay packet
- Higher 40% rate taxpayer (salaries c. £45,000+) £60 from their pay packet
- Top 45% rate taxpayer (salaries c. £150,000+) £55 from their pay packet
Some argue this is fair as everyone simply saves on paying income tax, others say higher earners do better as their tax gain is at least double. One idea mooted for the Autumn Budget is everyone just gets a 20% tax break, ie, a cut for higher earners, and a saving to the Treasury of over £10bn/yr.
Do you think pension tax relief should be cut for higher rate taxpayers?
Did you vote? Are you surprised at the results so far? Have your say below. To see the results from last time, click here.
If you haven’t already, join the forum to reply.
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