Balls’s plan to cut tax relief criticised by pensions experts
Pensions experts have criticised Labour’s plan to cut tax relief on pensions for people earning £150,000 to fund guaranteed jobs for the long term unemployed, saying it will struggle to raise anything like the £1bn claimed.
They also warn that many top earners will stop saving through pensions to avoid “double taxation”. The plan would see the tax reaped from cutting tax relief on pensions for top earners from 45 per cent to 20 per cent. Ed Balls, Shadow Chancellor, said he hoped to raise £1bn like this to pay for jobs for people out of work for 24 months or more.
But John Ralfe, the independent pension consultant who fixed the Boots pension scheme, said the plan would raise “nothing like the £1bn which has been claimed.
“This change would increase the effective tax on pension savings for higher earners to well over 45 per cent, so they would simply stop saving in a pension. By saving outside a pension they would continue to pay 45 per cent top rate.”
- 1 This is what happens when you tattoo Charmander on yourself, drunk, and with no experience
- 2 BBC election debate: The one photo that summed up the whole 90-minute leaders debate
- 3 18th century sex toy found in 'toilet of sword fighting school' in Poland
- 4 The Batman v Superman: Dawn of Justice trailer has leaked – watch
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
If I’m being racially abused I don’t need a white stranger with a saviour complex to rescue me
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
Russian warships in English Channel 'to conduct anti-aircraft and anti-submarine military drills'
£30000 - £40000 per annum + Benefits: Ashdown Group: Front-End UI Application ...
£18000 - £26000 per annum: Recruitment Genius: They work with major vehicle ma...
£27000 per annum: Recruitment Genius: Domestic Service Only Engineers are requ...
£23600 - £27500 per annum: Recruitment Genius: The Employability Service withi...