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Advisers favour single rate of pension tax relief

Tax-Taxation-Blocks-700.jpgA majority of independent financial advisers think there should be a single rate of tax relief according to this week’s Money Marketing poll.

More than 120 advisers took part in the poll with 77 in favour of a single rate of tax relief, 39 against and six undecided.

Yellowtail Financial planning managing director Dennis Hall explains the result is to be expected.

He says: “I am not surprised at this result as advisers take a pragmatic view of pensions tax relief. They want to retain it in some way rather than scrap it completely and move toward the tax treatment we see in Isas, for example. A flat rate would be a good compromise and be a fair way of reforming tax relief.”

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. Interesting ! hardly a representative sample ! If we continue to squeeze the middle classes then we will increase the demands on the state system
    Mark Hassall
    Moneyology

  2. Why O Why do we need, in 2018 a Government Incentive to save, We have all we need LISA & ISA, anything else is pure Political correctness, If the Country is in the state it is, and it is!! Stop all Tax Relief on all Savings and lets become responsible for our own financial independence. We all need to Grow Up.

  3. I despair every time one of these articles appears!
    The majority of the tax relief bill is not due to higher-rate relief due to the effects of TPA and reductions to the Annual Allowance, but is due to the costs of tax relief on Company contributions to repair artificial DB benefits.
    I am absolutely certain that with the increase in auto-enrolment, a move to a flat-rate tax relief would actually increase the overall tax relief bill.

  4. hilarious

    £450 Bn deficits in final salary pension schemes, more after the correction when it comes. The uk with the lowest rate of personal savings at 1.7% income (Germany 16%,China 35%). Uk with 1 in 3 household with no savings.

  5. What flat rate? It couldn’t be 30% for all as the additional 10% for the vast majority of pension savers who are basic rate tax payers would probably outweigh the 10% reduction for contributions from HRT payers.

    If the government wants to rein in the cost of HRT relief, why does it not just lower the top rate to 30%?

    Personally, I don’t see why HRT payers should be denied tax relief at their HMR.

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