Pensions - Articles - PwC comment on restricting relief for pension contributions

 “This makes a complicated pensions tax system even more complicated. An ad-hoc change just disengages business leaders from the role of pensions in their organisations. Senior employees may now not bother saving into pensions. It sends a mixed message into society. Auto-enrolment is about engaging the shop floor and lower earners in pensions, but by disengaging bosses it feels that people are no longer all in this together.

 “This creates a level of uncertainty and complexity for people earning around £120,000 or more a year, and could see a rush of these people coming out of salary sacrifice arrangements as they won’t know if they have breached the tax limit until the end of the tax year. We would encourage employers to undertake a review of their pensions salary sacrifice to understand who will be impacted by this dramatic change."