They’re at it again.

Robert Early writes:

Pointing out something that should be of great interest to any of your readers that pay into a defined contribution pension scheme.

Currently you only pay tax on this when you take out your pension after you retire, not when you pay in. The Government has announced a proposed reform to this scheme: The IT explains it in more details here.

What it boils down to is that if you are on the higher rate of tax, you will be losing this benefit and will now be paying 20% on your contributions, as well as the income tax when you take it out after retirement.

This is a new stealth tax, but nobody seems to be jumping up and down about it.

Anyone?