Pensions: Tax Allowances
The question
To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of increasing the tax relief ceiling on private pensions.
Answered by Emma Reynolds
The Government wishes to encourage pension saving, to help ensure that people have an income, or funds on which they can draw, throughout retirement. This is why, for the majority of savers, pension contributions are tax-free.
The annual allowance is currently set at £60,000. The Government keeps all aspects of the tax system under review as part of the annual Budget process, and in the context of the wider public finances.
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