View more on these topics

Advisers welcome OTS bid to simplify pensioner tax rules

Advisers have welcomed the Government’s decision to review the pensioner tax system as the Treasury continues its drive to simplify pensions.

This week, the Treasury ann-ounced that the Office of Tax Simplification will look at potential reforms to pensioner taxes after OTS chairman Michael Jack wrote to Treasury exchequer David Gauke outlining concerns about the current system.

The review will look into areas of the tax system which cause the most complexity and uncertainty for pensioners, identify how these issues vary within the pensioner population and explore what changes could achieve simplification and what the wider implications of these might be. However, the OTS’ remit will not include inheritance tax or tax relief on pension contributions.

Informed Choice managing director Martin Bamford says: “I certainly welcome this ann-ouncement. The current system is incredibly complex and cau-ses all sorts of problems for pensioners. The queries we get about tax problems tend to be from pensioners simply because they are more likely to have multiple streams of pension income combined with investment income and possibly a salary.”

Pension Transfer Solutions managing director Carl Melvin says: “Any effort to simplify the tax system for pensioners has to be good news because at the moment we have one of the most complex tax systems in the world.”

The Treasury has also issued a separate call for evidence on the potential integration of National Insurance contributions and income tax.

In the call for evidence, published on Monday, Gauke says: “For decades, we have operated income tax and NICs as two fundamentally different systems with different periods and bases of charge. We believe that the greater integration of the two systems has the potential to remove economic distortions, reduce burdens on business and improve fairness across individual earners.”



Cicutti: Focus on selling must stop

Almost 20 years ago, shortly after I had joined this newspaper, my then editor asked me to attend an LIA convention in London. I remember the event as if it were yesterday. About 1,000 or more paying delegates were crammed into a massive auditorium, applauding a range of motivational speakers whose main aim was to […]

Thames River goes against the tide on equities

Thames River Capital is slightly more optimistic about equities than some of its peers, based on an analysis of various macroeconomic factors. The multi-manager firm says it is not massively bullish on equities as there are still plenty of problems in the global economy nut it believes that from a historical perspective, this is not […]

Man Group to acquire Lehman exposure from GLG funds

Man Group is attempting to acquire all the residual exposure to the Lehman estates from GLG managed funds. Man Group acquired GLG Partners in a deal worth £1.1 billion in May 2010. The group is aiming to acquire the estates at current net asset value, taking the total consideration for the transactions to $355m  (£220m) […]


PFS selects Chartered Champions

The Personal Finance Society has named its latest regional Chartered Champions as part of its initiative to boost the profile of chartered status. The twelve financial planners selected by the PFS will act as local advocates in promoting chartered status in their region. The selected financial planners are: Martin Vaughan, Paragon Paraplanning, for the East […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm