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Labour vows to restrict pension tax relief for wealthiest
by Alex Steger on Sep 23, 2013 at 14:12
Labour would restrict pensions tax relief for the wealthiest savers, shadow chancellor Ed Balls has announced.
Speaking at the Labour party conference in Brighton, Balls said the move would be used to fund Labour’s Compulsory Jobs Guarantee scheme to help young people and the long-term unemployed find work.
‘We will fund this by a repeat of the tax on bank bonuses and by restricting pension tax relief for the very highest earners to the same rate as the average taxpayer,’ he said.
Balls' comments follow an earlier hint from shadow pension minister Gregg McClymont that Labour planned to reform the current pension tax relief regime.
A report in July by think tank the Pensions Policy Institute considered the implications of scrapping higher rate tax relief on pension contributions.
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