HMRC reports jump in cost of pension tax relief

Data shows pensioners are also paying more tax in retirement

Alex Levy
clock • 2 min read
Steve Webb: Although government may be tempted to slash tax relief to reduce this rising cost, the politics become very difficult halfway through a parliament
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Steve Webb: Although government may be tempted to slash tax relief to reduce this rising cost, the politics become very difficult halfway through a parliament

The cost of income tax relief on pensions has jumped by 26% from 2022/23 to 2024/25, according to private pension statistics released by HM Revenue & Customs (HMRC) today (30 July).

Total tax relief on contributions and investment income went up from £47.8bn in 2022/23 to £54.8bn in 2023/24 and then to £60.4bn in 2024/25. Over the same period, the amount of tax paid by peop...

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