Skip to main content Skip to footer

The PPI is an INDEPENDENT educational, not-for profit research institute. We undertake rigorous research from a neutral, long-term perspective

Reports and Briefing Notes

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.

Join our mailing list

Signup to receive all the latest news from the PPI

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. Find out more here