HM Treasury’s call for evidence on pensions tax relief administration—exploring potential new approaches to providing pensions tax relief

Table of contents

• What is the background to the call for evidence?
• What are the key proposals?
• What impact would the proposals have on pension scheme members, employers and administrators?
• What are the next steps?

Article summary

Pensions analysis: On 21 July 2020, HM Treasury launched a call for evidence seeking comments from the industry on the operation of both the main methods of administering pensions tax relief and what improvements could be made. One issue of concern in the call for evidence centres around the fact that low earners saving in a pension scheme may end up in differing financial positions depending on the scheme’s method of pensions tax relief. Paul Lawrence, managing associate at Linklaters, looks at the options proposed in HM Treasury’s call for evidence on pensions tax relief administration and discusses their potential Impact.