Pensions: Tax Allowances

(asked on 13th April 2021) - View Source

Question to the HM Treasury:

To ask Her Majesty's Government how many responses they received to the call for evidence on pensions tax relief administration published in July 2020; when they plan to publish the outcome; and what plans they have to carry out further consultation on the issue of low earners in net pay administration schemes who are paying 25 per cent more for their pensions than if their employer used a relief at source scheme.


Answered by
 Portrait
Lord Agnew of Oulton
This question was answered on 27th April 2021

The Government recognises the different impacts of the two systems of paying pension tax relief on pension contributions for workers earning below the personal allowance. The Call for Evidence – in line with the Government’s manifesto commitment to undertake a comprehensive review of this issue – set out the Government’s views on proposals already put forward by stakeholders, invited further proposals, and sought views on the operation of the relief at source method of tax relief for pension contributions.

The Call for Evidence is now closed. The Government is carefully analysing this issue and the responses received to understand what deliverable options for change may exist. These responses have raised technical points that we are continuing to explore with HMRC and others. The Government will respond to the Call for Evidence in due course.

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