Question to the HM Treasury:

To ask Her Majesty’s Government what estimate they have made of the savings of (1) tax, and (2) National Insurance relief, of restricting the annual allowance for pension contributions in defined contribution pension schemes to £25,000 a year.

The impacts of reducing the Annual Allowance from £40,000 a year would depend upon a number of factors including earnings growth and behavioural response to the policy change.

A costings note for the reduction of the Annual Allowance from £50,000 to £40,000 and the Lifetime Allowance from £1.5 million to £1.25 million was published at Autumn Statement 2012^[1].

[1] This policy costings document was published alongside Autumn Statement 2012

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/221551/as2012_policy_costings.pdf