Skip to main content

Occupational Pensions: Tax Allowances

Question for Treasury

UIN 134456, tabled on 8 January 2021

To ask the Chancellor of the Exchequer, what steps he is taking with Chancellor of the Exchequer to resolve net pay tax issues for low-income workers; and if he will make a statement.

Answered on

14 January 2021

The Government recognises the different impacts of the two systems of paying pension tax relief on pension contributions for workers earning below the personal allowance. At Budget 2020, the Government announced it would launch a Call for Evidence on pensions tax relief administration, in line with its manifesto commitment to undertake a comprehensive review of this issue.

This Call for Evidence set out the Government’s views on proposals already put forward by stakeholders, invited further proposals, and sought views on the operation of the RAS method.

The Call for Evidence is now closed. The Government is analysing the responses and will respond in due course.

Answered by

Treasury