Pension tax relief for most well off to be cut

News from the Treasury:

The annual allowance for tax-privileged pension saving will be reduced from £255,000 to £50,000, and the lifetime allowance will be reduced from £1.8 million to £1.5 million. This will replace the complex proposal legislated for by the last Government in the Finance Act 2010.

“Tax-privileged” is a tax break to you and me by the way. The governments estimates that in a normal full year these changes will bring in an extra £4 billion and affect around 100,000, four out of five of whom have incomes of over £100,000.

Reducing tax breaks for the most well off has long been Liberal Democrat policy. Good to see the government following in those footsteps.