Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

The MoneySaving Forum: join to chat & swap tips with other MoneySavers. Learn how in the Forum Introduction Guide

Poll

Should pension tax relief be halved to 20% for higher earners?This week's MoneySaving poll

Souk

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 (salaries c. £11,500+) taxpayer £80 from their pay packet
- Higher 40% rate (salaries c. £45,000+) taxpayer £60 from their pay packet
- Top 45% rate (salaries c. £150,000+) taxpayer £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?

I’m a non-taxpayer

Clear All
I’m a basic 20% rate taxpayer

Clear All
I’m a higher 40% rate taxpayer

Clear All
I’m a top 45% rate taxpayer

Clear All

This poll requires the use of JavaScript. Please enable JavaScript in your browser to participate in this poll.

Get Our Free Money Tips Email!

For all the latest deals, guides and loopholes - join the 12m who get it. Don't miss out