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Diggle tells meeting pension tax reliefs are &#39unsustainable&#39

The current structure of tax relief on pensions is “unsustainable” as it primarily benefits the wealthy, according to senior Inland Revenue civil servant Paula Diggle.

Head of savings and pensions policy Diggle made the comments at a closed Revenue workshop in Worthing attended by a number of industry figures.

The meeting was scheduled to deal with issues surrounding self-invested personal pensions and small self-administered schemes but quickly diverged into a wider discussion about Government pension policy.

Diggle pointed to the fact that 40 per cent tax relief is enjoyed by 5 or 6 per cent of the population, a situation she called unsustainable, but she would not be drawn on the Government&#39s plans for reform.

IFA Newman Houghton & Co consultant David Brunning says: “I can understand where the Government is coming from but if it is looking to bridge the savings gap it should be looking at making pensions more attractive.”

Downing Street pensions adviser Ros Altman says: “We spend £14bn on pensions tax relief in the UK. Half of that goes to the top 10 per cent and a quarter goes to the top 2 per cent. It cannot be right and, if this Government is not willing to address it, who is going to?”


Head of Aberdeen investment trusts resigns

Chris Fishwick, the head of investment trusts at beleaguered Aberdeen Asset Management and one of the architects of the split-cap sector, is to resign in December.Fishwick, who oversaw Aberdeen&#39s 19 split-caps – four of which have been liquidated or are in receivership – and was on the board of 10 of its trusts, is expected […]

Mayfair Capital – MC Property Income Fund

Wednesday, 16 October 2002 Type: Unit trust Aim: Income by investing in UK commercial property Minimum investment: Lump sum £100,000 Investment split: 100% in UK commercial property Isa link: No Pep transfers: No Charges: Annual 1.1% Commission: Initial up to 2% Tel: 020 7495 1929

Skandia closes guaranteed fund as it seeks safe haven

Skandia has closed it guaranteed pension fund to new business after falling equity markets forced it to move into gilts to meet its guarantees.The percentage of gilts in the fund has now risen to 60 per cent, at which stage the company decided the potential for further growth was too limited for it to accept […]

Abbey move sparks fears over future of ScotMut

IFAs are questioning the future of Scottish Mutual following the decision of parent Abbey National to spurn it in favour of signing a distribution deal with Prudential to sell its Prudence Bond through Abbey&#39s high-street branches.Abbey is understood to be increasingly weary of injecting capital into its ScotMut subsidiary but has scotched rum-ours that ScotMut […]


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