Tax relief on pension contributions costs the Treasury £38bn per year. With the Government seeking £20bn of extra NHS funding, it is rumoured that pension tax relief may change. Regardless of this, some taxpayers have already seen their pension savings relief cut back.

At present, contributions to UK registered pension schemes made by UK resident taxpayers qualify for tax relief. For most taxpayers the annual allowance for pensions savings from personal contributions is the lower of 100% of earned income or self employed profits or £40,000 per tax year.