A pension tax trap has hit the Armed Forces, as leaders say it has affected thousands of service personnel. A former defence minister revealed that some senior soldiers had even spurned promotions rather than face a financial loss as a result of the pension rules.
Between 2017 and 2018 there were 3,840 members of the armed forces pension scheme who breached their annual tax-free pensions savings limits.
Earlier this month the Treasury said it would review the controversial tax rules on pensions introduced by the former chancellor, George Osborne, which sees higher earners restricted from putting more than £10,000 annually into pensions without facing taxes.
Marginal tax rates really do actually matter…….