TaxCorporate TaxNo plans for pension stealth tax

No plans for pension stealth tax

Work and Pensions secretary Andrew Smith has stepped up government attempts to rubbish reports that plans are being laid to scrap higher rate tax relief for pension contributions in a new form of stealth tax.

Link Treasury offers assurances on pension tax relief

He said in the Commons the reports were no more than ‘fevered speculation’ and MPs would have to wait for the government’s proposed green paper setting out options for change.

Smith insisted questions of taxation were a matter for budgets, but replied to taunting Tories: ‘We do not have any such plans’.

He said ministers were receiving ‘all sorts’ of representations as part of preparation work, but had taken no decisions of the sort suggested.

He ruled out scrapping the perk in reply to a series of questions from Tory Shadow Work and Pensions secretary David Willetts.

Earlier Treasury officials issued a statement stating there were no plans – despite reports that a senior official had told the pensions industry existing perks were unsustainable.

But, while using words, which completely rule out the existence of such plans, Smith was careful not to rule them out for the future.

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