Think tank wants pension tax cuts

The government must slash the taxfree pension lump sum in order to spread taxes more fairly across the population, liberal think tank CentreForum said yesterday. Currently pensioners face numerous benefits and tax breaks, including the ability to take up to a quarter of their pension or £375,000 - whichever is lowest - as a tax-free lump sum on retirement. But the think tank thinks this should be cut to £41,450, in order to finance a £1,700 rise in the personal allowance, giving the average person a £330 tax cut.