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Taxation: Pensions

Treasury written question – answered on 12th December 2011.

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Photo of David Laws David Laws Liberal Democrat, Yeovil

To ask the Chancellor of the Exchequer what recent estimate he has made of the potential revenue yield from setting the annual pension tax relief allowance at (a) £40,000 and (b) £80,000; and if he will make a statement.

Photo of David Gauke David Gauke The Exchequer Secretary

HMRC estimate that setting the annual pension tax relief allowance at:

(a) £40,000 would yield around £600 million per year.

(b) £80,000 would cost around £1,200 million per year.

This is when compared to the current £50,000 annual allowance which was introduced for tax year 2011-12 onwards.

These estimates are on an accruals basis and exclude behavioural effects.

Does this answer the above question?

Yes1 person thinks so

No0 people think not

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