Dramatic cut in pension relief
The coalition is not afraid of the moneyed classes, or Peter Mandelson’s ‘filty rich’. Tax relief on pension contributions is to be dramatically cut. The allowance will be decreased from £250,000 per annum to £50,000 and the pension cap will fall from £1.8m to £1.5m and retiring workers could be taxed at 55 percent on any sum above that sum. These changes will save the Treasury £4bn per annum, mainly by limiting how much of a bonus pot or a windfall can avoid income or capital gains tax. The Telegraph describes the move as a ‘raid’ on the ‘squuezed middle’, which is not strictly true. The previous governnment made similar