The Government’s alternative proposals to restrict pensions tax relief are an improvement on the previous administration’s rules but there are still issues to be resolved to make them workable said the CIOT.
‘We have always argued that the original proposals would cause disproportionate complexity and significant administrative burdens on individuals businesses pensions administrators and HMRC ’ said Colin Ben-Nathan Chairman of the CIOT’s Employment Taxes Sub-Committee.
‘Our view was and remains that lowering the annual allowance can achieve the Government’s policy goals whilst also maintaining certainty and fairness. We therefore welcome this discussion on an alternative approach.
‘Although a reduced annual allowance impacts on more individuals than would restricting the tax relief for individuals with incomes of £150 000 and over we think the simplicity of a reduced annual allowance has the potential to be fairer simpler to understand and minimises...
