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AS 2014: Govt drops pensions tax relief for over 75s plan

The Government has dropped plans to extend tax relief to pension contributions made by people over the age of 75, the Autumn Statement reveals.

As part of the March Budget, the Government said it would be exploring “with interested parties whether those tax rules that prevent individuals aged 75 and over from claiming tax relief on their pension contributions should be amended or abolished.”

There are growing industry calls to reflect changing work patterns and life expectancy by doing away with using age 75 as a significant cut off point in pensions legislation.

But now the Government has confirmed following an “informal consultation” the age limit at which tax relief can be claimed on pension contributions “will remain at age 75”.

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. #~*&^%$£”

    Older people are having to work later in their lives. The State Pension is moving ever further away. So if an elderly working individual is trying to boost his/her private pension, I cannot understand the Government’s logic that they won’t receive even basic rate tax relief at source – as younger individuals do.

    Unfair doesn’t even come close to describing this age discrimination.

    If the Government is paranoid that yet more wealthy individuals will benefit, post 75, from higher rate tax reliefs on pension contributions, (which they would of course) then cap the annual allowance at a lower level and restrict tax relief to basic rate only. It is normal, elderly folk who need this help and they don’t tend to make annual contributions of 40k to obtain relief at 40%/45%.

    End of rant

  2. This will encourage the continuation of ageism in financial services. It is a dreadful omission and should be reconsidered without delay.

  3. Christine Brightwell 3rd December 2014 at 7:49 pm

    Oh dear, more ageism

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