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Rachel Reeves plots stealth tax raid on retirement savings for budget: The Times
The planned reforms aim to raise up to £2 billion annually by capping tax breaks on salary sacrifice pension contributions to address a £30 billion public finance gap.
- Later this month, Chancellor Rachel Reeves will cap salary sacrifice at £2,000 a year, with contributions above subject to national insurance, potentially raising up to 2 million.
- Facing a 30 billion gap, Chancellor Rachel Reeves considers pension and tax measures amid warnings that breaking manifesto pledges or raising income tax could erode public trust, officials say.
- Employers warn that RSM shows a worker on 45,000 saving 5% pays 30 more in NI, while a 125,000 earner saving 25,000 faces 460 more, increasing employer NIC bills.
- From April 2027, pension pots will become liable for inheritance tax, with government projections indicating about 10,500 additional estates will face charges annually and severe impacts on estates above 2million.
- Analysts expect employers providing salary sacrifice schemes to reduce pension generosity or stop offering them, while campaigners and pension professionals warn the cap could disincentivise saving and hit employees and parents using sacrifice.
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Reeves eyes clampdown on salary sacrifice in latest stealth tax on high earners
Rachel Reeves is preparing to tighten the rules on salary sacrifice schemes in what would amount to a stealth tax raid on pension savings, as the chancellor searches for ways to fill a yawning £30bn black hole in public finances. Reeves will use her November Budget to cap the amount that ...
Rachel Reeves faces backlash over potential raid on pension perks
The crackdown, expected to be confirmed in the Budget later this month, would see new limits on salary sacrifice pension schemes - arrangements allowing employees to boost their retirement savings before tax is deducted
·Plymouth, United Kingdom
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The Independent (US)
The Independent (US)Reeves ‘targets tax raid on employee pension contributions at Budget’
Employees contributing more than £2,000 a year into work-based pensions could pay national insurance on the retirement savings, according to a report by The Times
·London, United Kingdom
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Coverage Details
Total News Sources11
Leaning Left2Leaning Right4Center4Last UpdatedBias Distribution40% Center, 40% Right
Bias Distribution
- 40% of the sources are Center, 40% of the sources lean Right
40% Right
L 20%
C 40%
R 40%
Factuality
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