Pension Tex Relief: It was early.. I was waking up.. but did I hear right?

[Zak33]

Did I hear, this am on Radio 4, that the Government is considering abolisihng the higher rate tax rebate for pension contributions?

Currently, everyone paying lower rate tax gets it back into their pension contribution.... so whether you have your pension deducted by your boss, the governemt puts the tax back into the pot to help you, or if you pay into your own pension pot, the same happens into the pension pot. Ypur 20% tax goes back into it. Nice.

But if you're a a higher rate tax payer, you can pay enough into your pension to bring you back down under the 40% income level and hence save paying tax at 40% by having it also put back into the pension.

OK you have less salary to spend, evey month, every year... because you pay lots more of it ito your pension, and ONE day you'll be taxed on it as a pension payment when you claim it as an old 'un, but it goes towards a larger pension pot now.

But.... it sounded a lot like there is talk of removing that?

Is that right?

[jackobyte]

some xtra info on google for you
http://www.google.co.uk/search?hl=en...?&spell=1&sa=X

http://www.telegraph.co.uk/finance/p...wance-cut.html