Another way for the Government to save money?
The Government is considering making a u-turn on scrapping the Child Benefit and instead scrapping the higher-rate pension tax relief, the Sunday Telegraph reported.
Patrick Hennessy, Political Journalist states that “the treasury would see the axing of tax relief currently paid out on pension contributions by people who pay income tax at the higher rates of 40% and 50%.
The Government suggests that they could save up to £7billion each year by making this change.
The Telegraph believes that this is the first step to cut all pension tax relief, except on employer contributions, they suggest that this saving could be used to cut the deficit or increase the basic state pension.
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