Quote Originally Posted by Returnofrros View Post
I'll give you perfect example.

Tax relief on pension payments at rate you pay tax

IE 40% tax payer gets 40p into pension for every £1 he/she/they/them/it put in, whilst a standard rate tax payer who can do with all the help possible to save get 22p or whatever the standard rate is.

Not sure whether it's your highest marginal rate so not sure if 50% tax payer gets 50p or not.

Always thought this was a bit of an obscenity.
There is also a maximum lifetime allowance of just over £1 million for people making contributions into their person pension and if people exceed this limit they can end up paying a tax rate of 55%.
That is why GPs are retiring early or changing to part time work to avoid breaching their maximum lifetime limit for their personal pension allowance.
The obvious solution would be to scrap the maximum lifetime allowance limit for personal pensions.