Pensions tax relief will be slashed from April 2011. Currently high earners can bank up to £250,000 a year into their pension pots without paying a penny in tax. This will drop by 80% to £50,000 from next year, bringing in an estimated £4billion for the treasury.
Happy days.
Hilariously the Daily Mail today screamed “Middle class hit AGAIN”. Not sure which middle classes can afford to bank a cool quarter mil every year, but hey…