Pensions: Tax Allowances

(asked on 23rd March 2017) - View Source

Question to the HM Treasury:

To ask Her Majesty’s Government what estimate they have made of the savings of reducing the annual allowance for pension contributions in defined benefit pension schemes to £25,000 a year.


Answered by
Baroness Neville-Rolfe Portrait
Baroness Neville-Rolfe
Minister of State (Cabinet Office)
This question was answered on 5th April 2017

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

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