Quote Originally Posted by BCram View Post
Don't worry, Labour will make a mess of the pension system. They will find some way to cripple the people who make the most use of the allowance that enables someone to pay money into their pension pot out of gross earnings. Earn ?100k a year. If you want you can pay ?60k into your pension pot and pay tax on the balance. So you save ?24k in tax. Then if you have a defined contribution union scheme, on your death, you can pass any funds on to your wife or child tax free and exempt from inheritance tax.

Defined Benefit Scheme, public sector mainly, costs a fortune and isn't available for the same arrangements. You can arrange for your spouse to have a pension on the event of your death but no residual sum is available for transfer, and therefore no danger of inheritance tax.
The tax relief should be the opposite way round .....said it for 30 odd years......basic and non should get highest rate relief ....( They need it and encourages saving ), higher rate tax payers should get standard rate relief.