Financial Resolutions, 1978: Financial Statement, Budget, 1978. - Retirement annuity premiums
Under present legislation, premiums paid by self-employed persons to secure a retirement annuity qualify for income tax relief. There is, however, a limitation on qualifying premiums of 15 per cent of net relevant earnings or £2,000 whichever is the less. It has been represented to me that, in view of the percentage limitation, the retention of the cash limitation is inappropriate. I have accepted this view-point and propose accordingly to abolish the cash limitation. The 15 per cent limitation, which is in line with that applicable to superannuation contributions for employees, will, of course, be retained.