US Edition
HMRC Pension Changes in Autumn Budget Risk U-Turn 'Within a Matter of Weeks'
Pensions experts warn Chancellor Rachel Reeves that cutting pension tax relief could harm over 3 million basic-rate taxpayers and risk a political backlash similar to 2012's Omnishambles Budget.
- Pension consultancy LCP warns that Chancellor Rachel Reeves faces political risks if she cuts pension tax relief in the upcoming Budget.
- This caution follows lessons from the 2012 'Omnishambles' Budget when tax changes triggered public outrage and swift government U-turns within weeks.
- LCP outlines several key potential modifications to pension tax policies under consideration, such as ending higher-rate relief and limiting tax-free cash withdrawals, which may negatively impact both employees and employers.
- Steve Webb cautioned that although reducing pension tax relief might seem like an appealing option for a Chancellor facing financial pressures, it risks provoking a political backlash similar to the controversies seen in previous Budget decisions.
- LCP concludes that these reforms risk undermining pension saving, breaking manifesto pledges, hitting public sector workers hard, and triggering another rapid U-turn.
35 Articles
35 Articles
Salisbury Journal
Cutting pension tax relief could send government into 'Omnishambles' Budget
Ahead of the Autumn Budget, speculation is rife that Rachel Reeves may find some much-needed extra cash by cutting back on pension tax relief.
Telegraph & Argus
HMRC pension changes in Autumn Budget risk U-turn 'within a matter of weeks'
Ahead of the Autumn Budget, speculation is rife that Rachel Reeves may find some much-needed extra cash by cutting back on pension tax relief.
Chancellor risks new ‘Omnishambles’ Budget if she raids pension tax relief - IFA Magazine
Chancellor risks new ‘Omnishambles’ Budget if she raids pension tax relief, warns Steve Webb of LCP, as new analysis highlights the political and economic pitfalls of such a move. As the Chancellor searches for additional sources of tax revenue there is often pre-Budget speculation that she may find it by cutting back on pension tax relief. But new analysis from pensions experts LCP finds that although the Chancellor may think that pension tax …
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