Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans to bring forward legislative proposals to amend net pay pension schemes to ensure that people earning below the personal tax threshold can access their full tax relief entitlement.
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.