FURY OVER PLAN TO AXE PENSION TAX BREAK

TREASURY plans to scrap a tax break on pensions are a "ticking time bomb" for families on modest incomes, experts have warned

- Sam Lister

Tens of thousands of people a year face losing out under the proposals to end an exemption that benefits those who inherit untouched pension pots.

Campaigners have branded the move "extremely unfair".

The plan was slipped out in a flurry of documents published as MPs left Parliament for the summer recess and have now gone out to consultation. Sir Steve Webb, a partner at consultants LCP, said: "The small print of these proposals contains a ticking time bomb for people planning their family finances.

"If there is not a big response from the public to this consultation, the Government will go ahead with a change that could result in a tax hike for people on modest incomes who inherit a pension pot."

Unacceptable