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 (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?
|Yes, a flat 20% rate for everyone||430 votes (61%)|
|No, keep it as it is now||235 votes (33%)|
|Scrap all tax relief for pensions||37 votes (5%)|
|Yes, a flat 20% rate for everyone||2323 votes (64%)|
|No, keep it as it is now||1148 votes (32%)|
|Scrap all tax relief for pensions||136 votes (4%)|
|Yes, a flat 20% rate for everyone||668 votes (25%)|
|No, keep it as it is now||2018 votes (74%)|
|Scrap all tax relief for pensions||26 votes (1%)|
|Yes, a flat 20% rate for everyone||88 votes (32%)|
|No, keep it as it is now||176 votes (63%)|
|Scrap all tax relief for pensions||14 votes (5%)|
7,299 votes received.
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