Philip Booth writes for The Telegraph
Philip reacts to strong rumours that the current system of allowing pension contributions to be deducted from taxable incomes will be replaced by a flat-rate tax relief of around 30 per cent. However, a so-called tax relief of 30 per cent would simply be an arbitrary subsidy for pensions saving.
Employer pension contributions would have to be treated as benefits in kind and taxed at 20% or 40% before the 30% subsidy is added, which would be virtually impossible to administer in the case of defined benefit schemes and mainly affect public sector workers.
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