The Inland Revenue is set to drop controversial plans to ditch carry-back arrangements for personal pensions.
IFAs are expected to reap the rewards because carry-back requires detailed advice. The carry-forward option is still expected to be axed.
The move will be a big boost for self-employed who use the option to take advantage of previous years' pension tax-break allowances.
Carry-back enables high-earners, particularly the self-employed, to take advantage of personal pension tax-breaks for up to five years.
Earnings limits vary between 17.5 and 40 per cent depending on age.
The ditching of the carry-back and carry-forward options was originally announced by the DSS in stakeholder consultation brief 6 covering tax details, released in September.
Inland Revenue press officer Paul Franklin says: "Some good arguments concerning carry-back are coming in from the consultation process.
"Although no formal decision has been made, we acknowledge some solid arguments have been received with carry-back. It was particularly the carry-back arguments we have been impressed with."
Scottish Mutual pensions development director Leslie Gray says: "A lot of self-employed people probably plan their tax on the basis they can use carry-back in the future.
"I think it will be a good thing to keep – it does not add unnecessary complications to the launch of the stakeholder but helps out the self-employed."