Reducing high rate pensions tax relief would be ‘breach of trust’ - CBI
The CBI has responded to calls to reduce pensions tax relief for higher rate taxpayers, ahead of the Budget.
John Cridland, CBI Director-General, said:
“Any further reduction in pensions tax relief, just a year after the Government’s cut to the annual allowance hit many higher earners, would be a breach of trust with those already paying higher taxes, and harm our ability to attract the best talent to the UK.
“The coalition has already rejected similar plans advanced by the previous Government to limit relief to the basic rate of income tax, believing them to be unworkable.
“Further reducing this tax incentive would also have lasting damage on long-term saving, at a time when the Government is aiming to promote a savings culture through auto-enrolment.”