View more on these topics

Local tax inspectors to get contribution control

An Inland Revenue plan to give discretion on qualifying pension contributions to local tax inspectors after A-Day is raising concern among advisers and product providers.

From April 2006, the level of qualifying pension contribution will be placed at the discretion of local tax inspectors as annual contribution ceilings are abolished, a move which advisers are branding as “the death of pension simplification”.

The rule, which already applies to salaries to stop small businesses paying family members high, unjustified wages to avoid tax, is to be extended to companies.

Pension professionals are concerned that local tax inspectors have no experience of monitoring pension contributions and there has been no word from the Revenue on when, if at all, any guidance will be offered to the industry.

Central Tax & Trustee Planning director John Eburne says: “Even a contribution of less than salary may not qualify. It is entirely down to the discretion of the local inspector of taxes. The dark forces of conservatism within the Revenue appear to have derailed simplification before it even started.”

Standard Life senior technical manager John Lawson says that he has asked the Revenue to produce a guidance note for the pension industry but nothing has been forthcoming.

He says: “We are in for carnage. Local tax inspectors have never had experience of assessing pension contributions before and it is a big issue.”

An Inland Revenue spokes-man says: “Guidance on the proposed changes will be issued to staff in due course.”


The state of pay

Scottish Equitable head of business development Steven Cameron assesses the radical plans set out by the ABI for changes to adviser remuneration.

Deutsche enters Chinese fund market

Deutsche bank is to enter the Chinese fund management market via a joint venture between Deutsche Asset Management and Harvest Fund Management Company. The agreement will create the largest foreign joint venture fund management company in China to date. Harvest is a top three fund manager in China, as well as the countrys fifth largest […]

Directors, limited liability partners and auto-enrolment

By Jim Grant, Senior Product Insight & Technical Support Analyst 6 April 2016 brought in changes to employer duties for directors and partners in limited liability partnerships. Here we explain exactly what’s changed. Before 6 April 2016… Directors of limited liability companies where there were no other directors or employees were exempt from the employer […]


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