chip
Well-known member
My pension fund has heavily invested in UK infrastrucure, Thames Water. I have to take the risk of their investments and in this case they have very much gone down. The tax free lump sump is a way of amielorating this loss. If the investment had been sound, my proportion of the holding would be worth something and tax would be applied when I took any of that gain. Changing this is loose-loose for most people, £100K is not a lot of money compared to a decade ago and will be worth much less in 10 years time. You can't put that much in tax free wrappers so interest income will yield tax too.