In its Third Report on the Finance Bill, the Committee says that the special annual allowance should be significantly increased from £20,000 if alternative solutions to the issue of those making irregular pension contributions cannot be found.
The report says: “We question whether it was necessary to have introduced an anti-forestalling provision.
“Ministers were well aware of the generosity of the relief for high income individuals and should not have been surprised at the proportion of the cost which was going to them.
“For their part, individuals had a legitimate expectation that it would be maintained. We think that the measure may have been the wrong judgement.”