Drop tax relief for rich says paper

Tax relief on pension lump sums disproportionately benefits the wealthy at taxpayers’ expense, claims a report out today from liberal think-tank CentreForum. From 2012/13, wealthy retirees will still be able to take £375,000 from a £1.5m pension pot, tax-free. The think-tank argues instead that individuals taking lump sums above the higher rate income tax threshold (£42,475) should have to pay higher tax, as they would on any other form of income.