Summer Budget: 'ISA pensions' could reduce deficit by £10bn a year

A shift from an 'EET' to a ‘TEE' tax system could save the government £10bn a year, academic Michael Johnson has said.

In a briefing note published by the Centre for Policy Studies on 3 July, Johnson urged the government to switch from the current pensions tax system, where contributions and investment income are exempt from tax and only the benefits are taxed (EET), to a new system where contributions are taxable but investment income and benefits are exempt (TEE). It comes as Chancellor Geroge Osborne used his Summer Budget to launch a consultation to look at whether there is a case for reforming pensions tax relief. Johnson said that replacing current support for occupational pensions with a Workpl...