Tom McPhail, head of retirement policy at Hargreaves Lansdown said he always expected the government to favour the flat rate tax relief option in its review, and he pointed out that some investors may need to act swiftly to beneift from the current system.
“Logically, if the Treasury is going to announce a flat rate system for the future, they’d have to bring down the shutters on 16 March, in order to prevent wealthy investors from grabbing any last share of the higher rate relief before it is abolished,” he said.
“Any higher earners who are looking at paying into a pension, should think seriously about doing so before 16 March. Conversely, for basic rate taxpayers, it may make sense to wait until after that date.”
