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<p>The estimated exchequer cost arising from income tax relief on contributions made
to private pensions, and relief on the investment returns to private pensions in 2013-14
was £34.3bn<sup><sup>[1]</sup></sup>. Income tax on pensions in payment in the same
year was £13.1bn, resulting in a net cost of pensions tax relief of £21.2bn in 2013-14.</p><p>
</p><p> </p><p> </p><p>The proportion of the cost of income tax relief on pension
contributions for varying income ranges and years, is provided in the table below.</p><p>
</p><table><tbody><tr><td> </td><td colspan="6"><p>% of the cost of income tax relief
on contributions</p></td></tr><tr><td><p>Income bands</p></td><td><p>2009-10</p></td><td><p>2010-11</p></td><td><p>2011-12</p></td><td><p>2012-13</p></td><td><p>2013-14</p></td><td><p>2014-15</p></td></tr><tr><td><p>Up
to £19,999</p></td><td><p>8%</p></td><td><p>6%</p></td><td><p>5%</p></td><td><p>6%</p></td><td><p>5%</p></td><td><p>5%</p></td></tr><tr><td><p>Between
£20,000 and £44,999</p></td><td><p>31%</p></td><td><p>32%</p></td><td><p>35%</p></td><td><p>37%</p></td><td><p>37%</p></td><td><p>36%</p></td></tr><tr><td><p>Between
£45,000 and £74,999</p></td><td><p>25%</p></td><td><p>26%</p></td><td><p>28%</p></td><td><p>32%</p></td><td><p>33%</p></td><td><p>34%</p></td></tr><tr><td><p>Between
£75,000 and £99,999</p></td><td><p>7%</p></td><td><p>8%</p></td><td><p>8%</p></td><td><p>10%</p></td><td><p>10%</p></td><td><p>10%</p></td></tr><tr><td><p>Between
£100,000 and £149,999</p></td><td><p>8%</p></td><td><p>9%</p></td><td><p>9%</p></td><td><p>7%</p></td><td><p>8%</p></td><td><p>8%</p></td></tr><tr><td><p>£150,000
or more</p></td><td><p>20%</p></td><td><p>18%</p></td><td><p>14%</p></td><td><p>8%</p></td><td><p>7%</p></td><td><p>7%</p></td></tr><tr><td><p>All</p></td><td><p>100%</p></td><td><p>100%</p></td><td><p>100%</p></td><td><p>100%</p></td><td><p>100%</p></td><td><p>100%</p></td></tr></tbody></table><p>
</p><p> </p><p> </p><p>Estimates are based on Surveys of Personal Incomes with projections
for 2012-13 onwards. Projected years are subject to uncertainty.</p><p> </p><p> </p><p>[1]
This is published in HMRC National Statistics table PEN6, available here: <a href="https://www.gov.uk/government/statistics/registered-pension-schemes-cost-of-tax-relief"
target="_blank">https://www.gov.uk/government/statistics/registered-pension-schemes-cost-of-tax-relief</a>
<br> Figures for 2013-14 are the latest available.</p><p> </p>
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