Call for higher PRSA tax relief

THE EBS building society yesterday lent its support to a call to give the top rate of 42% tax relief to people on low incomes who take out the new pension plans known as PRSAs, or Personal Retirement Savings Accounts.

EBS yesterday became the first non-pension provider to announce it will offer the new savings products. It is to launch a highly-flexible standard PRSA aimed at getting those without pensions to save for their retirement, said the building society’s head of savings and investments, David Earle.

Huge numbers of people on low incomes will get tax relief of just 20% on their pension savings, against 42% for those with higher incomes, which many regard as a serious disincentive.