Will contractor pensions tax relief come under threat in the Budget?

Date: 17th June 2010

Sole traders working in the UK could see their contractor pension tax relief come under threat in next week's emergency Budget, it has been claimed.

Tony Harris, of independent contractor pensions and mortgage advisors ContractorMoney, said it is looking increasingly likely that further restrictions will be announced in the June 22nd Budget.

Restrictions have already been enforced to curb what Mr Harris described as an "almost unlimited scope" to invest, after HM Revenue & Customs lost out on billions of pounds due to the simplification of the pensions system four years ago.

Now the expert claims further restrictions are likely to be unveiled by the chancellor next week.

Writing for information website Contractor UK he commented: "It seems increasingly likely that some form of further restriction on higher rate tax relief will come into force in the emergency Budget on June 22nd.

"This grim prospect for individuals earning more than £100,000 is made all the more likely by suggestions in the Lib Dem manifesto that relief for such wealthy investors should be axed outright."

Posted by Jacob Williams