Coalition praised for taking simple approach
The Treasury’s reforms of higherrate pensions tax relief, ann-ounced last week, have been praised for their simplicity compared with the previous administration’s proposals.
Labour’s higher-rate tax relief proposals involved a complex tapering of tax relief for earnings over £130,000.
LV= head of pensions Ray Chinn says: “The coalition’s proposals will be simpler for individuals to understand than the proposals put forward by the previous Government.”
AJ Bell marketing director Billy Mackay says: “The vast majority of investors contribute less than £50,000 a year so they will see this as a simple and fair framework.”
Towers Watson senior consultant David Robbins says Labour’s plans would have cost £900m in set-up costs alone, with annual costs estimated at £115m.
He says: “It would have been horrifically complicated to administer.”
CBI head of employment and pensions Neil Carberry says: “For employers, the processes that would have been required to implement the Labour proposals would have been both onerous and unworkable.”