Should pension tax relief be halved to 20% for higher earners?MoneySaving Poll Results

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?

Results

I’m a non-taxpayer (702 votes)
Yes, a flat 20% rate for everyone430 votes (61%)
No, keep it as it is now235 votes (33%)
Scrap all tax relief for pensions37 votes (5%)
I’m a basic 20% rate taxpayer (3607 votes)
Yes, a flat 20% rate for everyone2323 votes (64%)
No, keep it as it is now1148 votes (32%)
Scrap all tax relief for pensions136 votes (4%)
I’m a higher 40% rate taxpayer (2712 votes)
Yes, a flat 20% rate for everyone668 votes (25%)
No, keep it as it is now2018 votes (74%)
Scrap all tax relief for pensions26 votes (1%)
I’m a top 45% rate taxpayer (278 votes)
Yes, a flat 20% rate for everyone88 votes (32%)
No, keep it as it is now176 votes (63%)
Scrap all tax relief for pensions14 votes (5%)

                   7,299 votes received.

We try to use technology to limit voting to one per person. Occasionally, this may erroneously block a few people's votes (eg, from shared offices). Apologies for that.