"Pensions tax relief should be used to help lower paid workers rather than those who are better off, a minister has suggested amid growing signs that George Osborne is preparing to mount a raid on the pensions of middle-class savers.
The Chancellor is considering plans to scrap higher rate tax relief on pension contributions as part of his Budget later this month and move towards a "flat rate", which could be as low as 25 per cent.
The move would give lower paid workers more tax relief on their pension constributions but represent a significant cut for those who earn more.
David Gauke, the Financial Secretary to the Treasury, said in response to concerns raised by a Conservative MP that the Government wants to ensure that "the costs of pensions tax relief are targeted in the right direction".
It came as it emerged that millions of people could be forced to re-plan for their retirement under Government plans to raise the state pension age.
Ministers have announced a radical review of the pensions regime amid concerns that he current system is not "affordable in the long-term".
The review will be chaired by Sir John Cridland, the former head of the Low Pay Commission, and will assess whether the current pensions system is "affordable in the long-term". "
Source: Minister hints at pensions tax raid on middle-class savers - Telegraph
So Brown robbed pension funds of dividend tax credit, Tories always pointed out at that.
Osborne in less than 12 months robbed EVERYBODY of dividend tax credit _AND_ now pension relief will go kaboom.
But since Labour would have done it anyway (according to Waldork) we should not be concerned about it
The Chancellor is considering plans to scrap higher rate tax relief on pension contributions as part of his Budget later this month and move towards a "flat rate", which could be as low as 25 per cent.
The move would give lower paid workers more tax relief on their pension constributions but represent a significant cut for those who earn more.
David Gauke, the Financial Secretary to the Treasury, said in response to concerns raised by a Conservative MP that the Government wants to ensure that "the costs of pensions tax relief are targeted in the right direction".
It came as it emerged that millions of people could be forced to re-plan for their retirement under Government plans to raise the state pension age.
Ministers have announced a radical review of the pensions regime amid concerns that he current system is not "affordable in the long-term".
The review will be chaired by Sir John Cridland, the former head of the Low Pay Commission, and will assess whether the current pensions system is "affordable in the long-term". "
Source: Minister hints at pensions tax raid on middle-class savers - Telegraph
So Brown robbed pension funds of dividend tax credit, Tories always pointed out at that.
Osborne in less than 12 months robbed EVERYBODY of dividend tax credit _AND_ now pension relief will go kaboom.
But since Labour would have done it anyway (according to Waldork) we should not be concerned about it
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