George Osbourne has now dropped plans to cut tax relief on pension contributions.
The original plans to announce these changes in the Budget on 16th March would have meant that tax relief on pension contributions would have been altered, or cut completely, but pension pot withdrawals would have been tax free.
There has been mixed views on these changes, however, it seems that the Treasury believe that it is not the right time to make such changes to pension tax relief.
A flat rate tax relief for all was also suggested, meaning benefit for basic rate tax payers but would have reduced relief for higher rate tax payers.
However, as it stands, tax relief on pension contributions will remain as they are, in line with income tax with basic rate tax payers receiving relief at 20% and higher rate tax payers receiving relief at 40%/50%.
If you would like to discuss this further, Gillian and Graham are always happy to help.