George Osborne to make pension tax raid on public sector

 
PA
20 November 2012
WEST END FINAL

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Doctors, head teachers and senior civil servants will be hit by a tax raid on pensions being planned by Chancellor George Osborne, it was revealed today.

Experts said proposals to squeeze tax relief in the Autumn Statement would affect people in the public sector earning £80,000 rather than merely the super-rich.

Cutting the tax-free threshold on funds put away each year in pension funds from £50,000 to £30,000 would raise about £1.8 billion.

However, while that would mainly hit people earning over £200,000 in the private sector, it would bite much lower down the income scale in the public sector, where “gold plated” pensions are treated differently, say experts.

Downing Street has ruled out a “mansion tax” and virtually ruled out higher council tax bands on £1 million homes.

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