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Taxation: Pensions

Volume 507: debated on Tuesday 16 March 2010

To ask the Chancellor of the Exchequer (1) what his policy is on the (a) removal and (b) reduction of tax relief on pensions savings for people paying income tax at the 40 per cent. rate; (319373)

(2) what his policy is on the introduction of a tax on the interest earned on pension fund investments;

(3) what his policy is on the introduction of a capital gains tax on pension fund investments;

(4) what his policy is on the (a) reduction and (b) abolition of tax free lump sums for qualifying pension schemes;

(5) what estimate his Department has made of the likely effect on Exchequer revenues of the (a) reduction and (b) abolition of tax free lump sums for qualifying pension schemes in the last 12 months;

(6) what estimate his Department has made of the likely effect on Exchequer revenues of the introduction of capital gains tax for pension funds in the last 12 months;

(7) what estimate his Department has made of the likely effect on Exchequer revenues of the introduction of taxation on pension fund growth in the last 12 months;

(8) what estimate his Department has made of the likely effect on Exchequer revenues of the (a) removal and (b) reduction of tax relief on pensions savings for people paying income tax at the 40 per cent. rate in the last 12 months.

The Government introduced a simplified regime for the taxation of pensions with effect from “A-day” (6 April 2006), and their approach to the taxation of pensions is set out in the Finance Act 2004 and in subsequent legislation.

Budget 2009 announced that from April 2011 tax relief on pension contributions would be restricted for those with incomes of £150,000 and over, and a consultation on the implementation of this restriction was launched at PBR 2009.

As with all areas of tax, the Government keep the taxation of pensions under review.