Retirement savers could be up against another pensions raid from the government that could raise ?7 billion from their funds.
Treasury officials admit that scrapping higher rate pension relief on contributions is a 'talking point ' for policy setters.
The measure is one of many Chancellor George Osborne is taking a look at for fast savings to raise the Treasury's depleted coffers.
Relief for lower rate (20%) taxpayers would doubtless remain, but relief for higher rate taxpayers (40% and 50%) could go.
Any money raised from the move would go towards funding the suggested flat rate ?140 a week state pension.
Though the measure is admittedly a debating point, the Treasury is fast to identify that it isn't on the official policy job list
Many fiscal experts blame previous Prime Minster Gordon brown's levy on dividend payments to pension investors for the sorry state of the UK's retirement savings.
Tax relief to top up funds is the major attraction for pension investment in the UK. If this benefit is reduced or dumped, much of the incentive for saving would be lost.
Ex pats particularly would have little reason for keeping their pensions in the UK and would potentially benefit from switching their cash overseas in to a qualifying recognised overseas pension scheme (QROPS) or qualifying non-UK pension scheme (QNUPS).
Non-UK residents do not pick up tax relief on contributions to a UK pension, but can transfer them without have to repay any relief received.
In numerous cases, the improved and more flexible investment options, tax-free expansion on funds and removal of currency limitations makes a QROPS or QNUPS a fascinating option compared against a UK pension.
Even tiny pension funds could benefit from a switch to an offshore finance centre as many QROPS providers in Guernsey have claimed low set up costs and administration charges that make a transfer out of the United Kingdom a doable proposition for funds worth less than ?100,000.
Treasury officials admit that scrapping higher rate pension relief on contributions is a 'talking point ' for policy setters.
The measure is one of many Chancellor George Osborne is taking a look at for fast savings to raise the Treasury's depleted coffers.
Relief for lower rate (20%) taxpayers would doubtless remain, but relief for higher rate taxpayers (40% and 50%) could go.
Any money raised from the move would go towards funding the suggested flat rate ?140 a week state pension.
Though the measure is admittedly a debating point, the Treasury is fast to identify that it isn't on the official policy job list
Many fiscal experts blame previous Prime Minster Gordon brown's levy on dividend payments to pension investors for the sorry state of the UK's retirement savings.
Tax relief to top up funds is the major attraction for pension investment in the UK. If this benefit is reduced or dumped, much of the incentive for saving would be lost.
Ex pats particularly would have little reason for keeping their pensions in the UK and would potentially benefit from switching their cash overseas in to a qualifying recognised overseas pension scheme (QROPS) or qualifying non-UK pension scheme (QNUPS).
Non-UK residents do not pick up tax relief on contributions to a UK pension, but can transfer them without have to repay any relief received.
In numerous cases, the improved and more flexible investment options, tax-free expansion on funds and removal of currency limitations makes a QROPS or QNUPS a fascinating option compared against a UK pension.
Even tiny pension funds could benefit from a switch to an offshore finance centre as many QROPS providers in Guernsey have claimed low set up costs and administration charges that make a transfer out of the United Kingdom a doable proposition for funds worth less than ?100,000.