Tax relief on pensions favours rich
Britain's highest earners are pocketing 20 times more tax relief on their pension contributions than ordinary workers, a new analysis has revealed.
Research by the investigative website Exaro, using the Government's own figures, found people in the UK earning more than £150,000 a year are attracting tax relief averaging £12,000 annually. This compares with hundreds of pounds for the typical pension saver.
In some cases, top earners are pocketing pension relief worth £25,000 a year. The analysis will increase pressure on the Government to reform pension-tax relief, which critics claim cannot be afforded at a time of huge public-sector spending cuts.
Under the current system, pension contributions are deducted before tax is paid. That means employees paying the 50 per cent top rate of tax benefit take significantly more than those who pay tax at the basic rate of 20 per cent.
In September, Nick Clegg told his party's conference that there was a "legitimate debate" to be had about the cost of pension relief for rich people.
- 1 Isis 'jihadi bride' claims forced sex with Yazidi girls is never rape because Koran condones it
- 2 Art Garfunkel calls Paul Simon a 'monster' with a Napoleon complex
- 3 Woman accidentally shoots herself in the head while posing for a selfie
- 4 Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
- 5 Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
Isis 'jihadi bride' claims forced sex with Yazidi girls is never rape because Koran condones it
Woman accidentally shoots herself in the head while posing for a selfie
Isis burns woman alive for refusing to engage in 'extreme' sex act, UN says
Puerto Rico, island of lost dreams: People are leaving the debt-hit territory in droves as near neighbour Cuba's star rises
16-year-old girl beaten and burned alive by lynch mob in Rio Bravo, Guatemala
As a white man, I'm surprised more women aren't tweeting the hashtag #KillAllWhiteMen
Scotland may have to leave the EU even if it votes to stay in, David Cameron confirms
The day that Britain resigned as a global power
Almost a third of school pupils believe 'Muslims are taking over our country', study claims
SNP fury as HS2 finds 'no business case' for taking fast train service to Scotland
Gay marriage 'Bert and Ernie' cake bakery found guilty of discrimination in Northern Ireland
£40-50K: Guru Careers: We are seeking an experienced Software / C# Developer w...
£35 - 40k + Benefits: Guru Careers: We are seeking a Software Developer (JavaS...
£18000 - £23000 per annum + Commission: SThree: As a Trainee Recruitment Consu...