Consultation outcome - Pensions tax relief administration

In order to better align outcomes for low-earning individuals saving in pension schemes, regardless of how their scheme administers pensions tax relief, a system will be introduced to make top-up payments directly to low-earning individuals saving in pension schemes using a Net Pay Arrangement from 2024-25 onwards. The government will also invest in HMRC to modernise the administration of Relief at Source, and deliver a data driven tax administration system for Relief at Source pension schemes, employers, and members.

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Pensions tax relief administration: Call for Evidence Response

Ref: ISBN 978 1 911686 35 4, 3164PDF, 341KB, 22 pages

This call for evidence seeks to gather evidence on the operation of both the main methods of administering pensions tax relief and what improvements might be made.

This consultation ran from
2pm on 20 July 2020 to 11pm on 13 October 2020

Consultation description

This call for evidence was announced at Budget 2020.

The government is concerned about the potential for a low-earning individual’s take-home pay to be affected by the method of pensions tax relief operated by their pension scheme. The government is keen to explore this issue further to understand what deliverable options for change may exist.

This call for evidence seeks views on how certain proposals could be adapted to address the discrepancy in outcomes for low earners in a way that is consistent with the government’s principles for reform. Any other proposals around the administration of pensions tax relief would also be welcomed.

Pensions tax relief administration: call for evidence

PDF, 499KB, 40 pages