In a busy budget on 8 July 2015 the government announced a green paper on pension tax relief reforms. The government have asked 8 leading questions, inviting a consultation on how to make pension savings and pension contributions more attractive, to get the UK public engaged in pension saving. With a commitment by the Conservatives to the coalition’s pension flexibility reforms, Provisio invite you to pass comment on what changes you would propose.

Would it be a flat rate of relief, a capped rate of relief, the merging of ISAs and Pension savings?

Our Director, Martin Gorvett, had this to say, “I think the general public accept that there has to be a limit on the amount of pension tax relief offered by the government. My own representation would be against the lifetime allowance. Not just an increase but an absolute removal, It’s a stealth investment tax on those who do the right thing.”

Please see below for the summary of questions:

  1. To what extent does the complexity of the current system undermine the incentive for individuals to save into a pension?
  1. Do respondents believe that a simpler system is likely to result in greater engagement with pension saving? If so, how could the system be simplified to strengthen the incentive for individuals to save into a pension?
  1. Would an alternative system allow individuals to take greater personal responsibility for saving an adequate amount for retirement, particularly in the context of the shift to defined contribution pensions?
  1. Would an alternative system allow individuals to plan better for how they use their savings in retirement?
  1. Should the government consider differential treatment for defined benefit and defined contribution pensions? If so, how should each be treated?
  1. What administrative barriers exist to reforming the system of pensions tax, particularly in the context of automatic enrolment? How could these best be overcome?
  1. How should employer pension contributions be treated under any reform of pensions tax relief?
  1. How can the government make sure that any reform of pensions tax relief is sustainable for the future?

If you would like to share your thoughts with us, please email your comments to

The consultation closes on 30 September 2015 where the government will consider all replies and publish a ‘summary of responses’. This will set out how the government intends to proceed.

For further information on the consultation and how to respond, please visit GOV.UK.