Retirement savers could face another pensions raid from the governing body that might raise ?7 bn. from their funds.
Treasury officials admit that ditching higher rate pension relief on contributions is a 'talking point ' for policy setters.
The measure is one of the many Chancellor George Osborne is having a look at for immediate savings to lift the Treasury's used coffers.
Relief for lower rate (20%) taxpayers would probably remain, but relief for higher rate taxpayers (40% and 50%) could go.
Any money raised from the move would go towards financing the suggested fixed-rate ?140 a week state pension.
Though the measure is admittedly a debating point, the Treasury is fast to identify that it isn't on the official policy job list
Many finance mavens blame former Prime Minster Gordon brown's levy on dividend payments to pension speculators for the sorry state of the UK's retirement savings.
Tax relief to top up funds is the major attraction for pension investment in the Uk. If this benefit is reduced or scrapped, lots of the motivation for saving would be lost.
Ex pats particularly would have tiny reason for keeping their pensions in Great Britain and would probably benefit from switching their cash overseas in to a qualifying recognised overseas pension scheme (QROPS) or qualifying non-UK pension scheme (QNUPS).
Non-UK residents do not pick up tax relief on contributions to a UK pension, but can transfer them without have to repay any relief received.
In several cases, the improved and more flexible investment options, tax-free growth on funds and removal of currency restrictions makes a QROPS or QNUPS an interesting option compared to a UK pension.
Even tiny pension funds could benefit from a switch to an offshore finance centre as many QROPS providers in Guernsey have claimed low set up costs and administration charges that make a transfer out of the United Kingdom a doable proposition for funds worth less than ?100,000.
Treasury officials admit that ditching higher rate pension relief on contributions is a 'talking point ' for policy setters.
The measure is one of the many Chancellor George Osborne is having a look at for immediate savings to lift the Treasury's used coffers.
Relief for lower rate (20%) taxpayers would probably remain, but relief for higher rate taxpayers (40% and 50%) could go.
Any money raised from the move would go towards financing the suggested fixed-rate ?140 a week state pension.
Though the measure is admittedly a debating point, the Treasury is fast to identify that it isn't on the official policy job list
Many finance mavens blame former Prime Minster Gordon brown's levy on dividend payments to pension speculators for the sorry state of the UK's retirement savings.
Tax relief to top up funds is the major attraction for pension investment in the Uk. If this benefit is reduced or scrapped, lots of the motivation for saving would be lost.
Ex pats particularly would have tiny reason for keeping their pensions in Great Britain and would probably benefit from switching their cash overseas in to a qualifying recognised overseas pension scheme (QROPS) or qualifying non-UK pension scheme (QNUPS).
Non-UK residents do not pick up tax relief on contributions to a UK pension, but can transfer them without have to repay any relief received.
In several cases, the improved and more flexible investment options, tax-free growth on funds and removal of currency restrictions makes a QROPS or QNUPS an interesting option compared to a UK pension.
Even tiny pension funds could benefit from a switch to an offshore finance centre as many QROPS providers in Guernsey have claimed low set up costs and administration charges that make a transfer out of the United Kingdom a doable proposition for funds worth less than ?100,000.
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