Chancellor eyeing shake-up of pensions tax relief in Budget - reports

AJ Bell says constant speculation 'damaging confidence' in the system

The Chancellor of the Exchequer Sajid Javid is understood to be considering cutting pensions tax relief to 20% in his March Budget, according to the Financial Times.

If Javid were to cut the relief from 40% to 20%, it would raise an additional £10bn a year, the FT said, which would be used to help fund Prime Minister Boris Johnson's plans to "level up" the economy. The shake-up to pensions tax relief, if the Chancellor were to go ahead with it, would target the country's top earners as the FT reported that his allies said Javid wanted to make the tax system "fair and efficient". Tom Selby, senior analyst at AJ Bell, said any reforms to the pension tax framework should avoid harming the UK's savings culture. Chancellor to 'usher in decade of ren...