![\"Rachel](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/09\/0_rachel-reeves1.jpg\")
Rachel Reeves could scrap pension perk which has been branded a ‘superpower’<\/p>\nReports indicate that officials are now reviewing proposals for a flat 30% rate of pensions tax relief, a policy previously supported by Labour Party Chancellor Rachel Reeves in 2016 as a backbencher.Rachel Reeves could scrap pension perk which has been branded a ‘superpower’<\/p>\n
The government could scrap a major pension perk which Martin Lewis reckons is a “superpower”. Reports indicate that officials are now reviewing proposals for a flat 30% rate of pensions tax relief, a policy previously supported by Labour Party<\/a> Chancellor Rachel Reeves in 2016 as a backbencher.<\/p>\n If implemented, this could generate up to \u00a32.7 billion in revenue \u2013 while redistributing some advantage away from higher earners. \u201cMany clients are already asking what a potential change in pensions tax relief might mean for their long-term plans,\u201d says Brian Morman, Director at Brunsdon Financial.<\/p>\n \u201cWhile no official reforms have yet been announced, it\u2019s a good time to review your pension strategy and make sure it remains tax-efficient.”<\/p>\n READ MORE UK prescription rule change means households face \u00a3247 charge<\/strong><\/a><\/p>\n Spekaing previously, 52-year-old BBC<\/a> and ITV<\/a> star Martin Lewis said: \u201cThe most important thing to remember is the money you put into your pension is from pre-tax salary. So this is the superpower. You get tax relief.<\/p>\n “So as a basic 20% rate taxpayer, you\u2019re putting \u00a3100 in, but of course when you get it in your pay packet 20% is being taken off. So to put \u00a3100 in only costs you \u00a380. So you\u2019re getting \u00a3100 investment for the cost of \u00a380.\u201d<\/p>\n Martin continued: \u201cSo for a basic rate taxpayer, that means you, if you\u2019re putting in \u00a380, you\u2019re getting \u00a3160, double the money going into your investment, double your money from what\u2019s coming out your pay packet.<\/p>\n \u201cIf you\u2019re a higher rate taxpayer, \u00a360 becomes \u00a3160, if you\u2019re a top rate taxpayer – and some people might say it\u2019s unjust they\u2019re the ones that get the biggest but anyway – \u00a355 is nearly being trebled to \u00a3160 going into your investments.<\/p>\n \u201cThat is just completely unbeatable. So in a way if you were not to do it, you\u2019re giving up a payrise.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Reports indicate that officials are now reviewing proposals for a flat 30% rate of pensions tax relief, a…\n","protected":false},"author":2,"featured_media":413875,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[51,474,1016,2499,16,15],"class_list":{"0":"post-413874","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-hmrc","11":"tag-personal-finance","12":"tag-uk","13":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115181586392132322","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/413874","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=413874"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/413874\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/413875"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=413874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=413874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=413874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}