Big money public sector pensions exempt from new tax rules

Senior
civil servants, judges and MPs are set to escape new pension rules which could
save them thousands of pounds in tax.

Members
of the civil service and parliamentary occupational schemes will be exempt from
a crucial rule designed to cap the tax benefits of pension savings of more than
£1.5m, reports The Guardian.

They
will escape the tax after the Government refused to delete a clause in the
Finance Bill allowing public sector officials extra protection for their old
pension rights.

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It is
estimated that anywhere between 10,000 and 300,000 workers who earn more than
£75,000 to £100,000 will amass a pension pot worth more than the new £1.5m
ceiling. Under the new rules, pensions over this amount would normally face a
surcharge of 55p in every £1.

By
Mike Berry