The government has published a summary of responses to its consultation on possible reforms to pensions tax relief. The responses contained ‘considerable variation’ on the detail of how the government should apply relief through a number of suggested models. These included moving from the current ‘exempt-exempt-taxed’ structure to ‘taxed-exempt-exempt’ in a form of pensions ISA or to a single flat rate of relief.
The majority of respondents felt that employers play a ‘crucial role’ in increasing people’s level of savings and were in favour of the government continuing to provide some form of incentive for employers in any new pensions system.
On the question of how to make any reform sustainable for the future stability was seen as the most important factor. Institutional respondents in particular highlighted the importance of getting implementation right by giving ‘careful consideration’ to the timetable for any reform.
There had been...
