Pensions Company Aviva join call for cut to higher rate pension tax relief
The TUC made the headlines with our analysis of the cost of higher rate tax relief on pensions.
Now insurance company Aviva have called for the abolition of higher rate tax relief with the money saved to provide tax relief of 30% for all pensions savings.
This would mean that only those earning quite a bit above the start of the higher rate band would lose. All standard rate payers and higher rate payers earning just above the higher rate would gain.
It’s an interesting proposal.
Tom McPhail of Hargreaves Lansdown, the financial adviser, said: “The proposal to realign the tax relief will not be at all popular with higher rate taxpayers, who must be increasingly feeling as if they are being forced to bear the entire weight of the Government’s economic woes on their backs.”
I rather think those who have lost their jobs might have something to say about that.