Pensions: Labour to cut tax-relief for the highest earners

iStock_000024336538_ExtraSmallIt has emerged that if Labour win the next election, they will cut tax-relief on pensions for the highest earners and use the proceeds to fund a new job creation program for young unemployed people. Under the plans Labour would reduce the tax-relief received by those people earning in excess of £150,000 each year from 45% to 20%. The money saved would be used to fund the Compulsory Jobs Guarantee, designed to help young people, who have been out of work for more ...

Pensions: Labour to “restrict pension tax-relief”

iStock_000024336538_ExtraSmallEd Balls, Labour’s Shadow Chancellor, has announced he will look to restrict the tax-relief paid on some pension contributions should there be a change of Government in 2015. Contributions to pensions currently attract tax-relief. Basic rate tax-payers receive 20% relief, effectively turning an £80 contribution to £100; higher rate tax-payers can claim back additional amounts subject to an overall cap in contributions. Higher rate tax-relief to be abolished? However, the merits of higher rate tax-relief has been continually debated and it now seems Labour are set ...