Apologies for the very slow question - but from this article am I to infer that this would result in an extra tax bill? The article is all about claiming tax relief on pension contributions, which we don't make anyway. So surely from the AFPS perspective this is a hypothetical argument?
Additionally, as you have to physically claim back the higher rate tax relief through the tax return system, surely removing it wouldn't necessarily mean that you had to pay out the extra tax, just that you were no longer able to claim back the tax which would be worth the equivalent of 5p on the rate of income tax?
I have to say that overall, it's a poorly written article, designed to capture public sentiment more than it does accurately reflect the state of affairs. Tax legislation is hugely complex and all they are doing here is over simplifying it for headline purposes. That said, I still think that Danny Alexander is an incredibly dangerous individual if you happen to have any desire to succeed at all in life. I wait with baited breath to see what he tries to tax next.