The government is consulting on whether there is a case for reforming pensions tax relief to strengthen incentives to save and offer savers greater simplicity and transparency, or whether it would be best to stick to the current system.

The consultation sets out various options for how the system could be reformed. These range from a fundamental reform of the system (for example, moving to a system which is 'taxed-exempt-exempt' like ISAs and providing a government top-up on pension contributions) to less radical changes (such as retaining the current system and altering the lifetime and annual allowances).