No review for pension tax relief

The government has said it will not review pension tax relief in the next 12 months, despite coming under pressure from MPs on the Committee of Public Accounts’ over this £38bn expense.

However, the government agreed that in the next three months, it should establish and publish the criteria it will use to determine which pension tax reliefs to evaluate in the future.

Anyone contributing to a pension, and in particular higher and additional rate tax payers, should give a sigh of relief. The message to everyone who is still needing to build up pension benefits rather than use them, is to make the most of the next 12 months to get as much put into pensions as possible.

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