PPI analysis of TISA proposals for pensions tax relief
TISA approached the PPI to assist them in calculating the impact on the cost to the Treasury of a new proposal for the UK tax relief system. The proposal consisted of the following:
- 33% tax relief on all employee contributions to pension schemes
- 20% tax relief on employer contributions in respect of basic rate taxpayers
- 33% tax relief on employer contributions made in respect of higher or additional rate taxpayers
- Abolish salary sacrifice
- The changes to the system apply to Defined Contribution (DC) schemes only
This analysis sets out the impact on the Treasury if the TISA proposal had been in place in the tax year 2012/13.
To download the analysis, please click here.
Keywords: tax relief, matching contributions, national insurance, Defined Contribution, DC, distribution, salary sacrifice, taxpayer, tax incentives, reforms, lifetime allowance, annual allowance, tax-free, lump sum, trivial commutation, Inland Revenue, HMRC, Her Majesty's Revenue & Customs, HM Treasury, Budget, pre-Budget, tax, taxation, TISA