Higher rate pension tax relief to be scrapped?

 
There are rumours that the Chancellor, George Osborne, is considering scrapping the 50 per cent tax rate - but it could come at the cost of implementations of additional taxes for the wealthy. Liberal Democrats are now fairly certain that the proposed 'mansion tax' will not go through in the upcoming Budget, but there has been talk of the abolition of higher rate pension tax relief, which would hit the wealthy in particular. Vince Cable, the business secretary, had hoped for a tax on properties worth £2 million or more but senior Conservative party members are putting up substantial opposition to the idea. As a result, the Lib Dems are pushing for a hit on the higher rate pension tax relief instead. This would mean that those who pay income tax on the 40 and 50 per cent tax rates would no longer be given relief on their pension contributions. However, the scrapping of the 50 per cent tax rate itself is most likely some way off, so these changes are still in the pipeline and subject to revision if they are ever introduced at all.

http://www.50percenttax.co.uk/index/2012/3/12/higher-rate-pension-tax-relief-to-be-scrapped.html