The Liberal Democrats have voted to cut an individuals lifetime pension tax relief allowance by £250,000 to £1m
In a debate on tax policy at the party's annual conference in Glasgow, Chief Secretary to the Treasury Danny Alexander said the change was needed as 58% of the total £35bn spent on tax relief went to the richest tenth of the population.
However, the party voted to retain the existing £40,000 annual relief allowance.
In a number of votes on tax policy, the party also pledged to push for further increases in the personal allowance to cover the earnings of someone working full-time on the National Minimum Wage, and to introduce a mansion tax on homes worth more than £2m.
The party's Fairer taxes policy paper also stated that the party recognises 'in principle' the merits of moving to a single rate of relief, rather than one based on the level of income tax paid.
However, there were 'significant practical obstacles to such a proposal', particularly in respect of how to apply such a system to defined benefit schemes. Therefore, the party would campaign for a lowering of the lifetime cap as 'a more effective way of restricting the pension tax relief given to the wealthiest'.