A cross-party group of MPs says the Government must review pension tax relief bands, including the tax-free cash lump sum, to see if resources could be better spent.The work and pensions select committee report into the White Paper plans has called for the Government to investigate whether pension tax relief should be cut to fund increased state spending on pension benefits. The report highlights two areas that MPs believe should change – the tax-free lump sum and the relief given to individuals who are higher-rate taxpayers when they make contributions but not when they get their pension income. The report quotes evidence from Brunel Business School professor of finance and economics Philip Davis, who describes the tax-free lump sum as an anomaly and “it is the Exchequer giving away money”. The LibDems will prop- ose changes to the pension tax relief system when their tax commission rep-orts in August and Labour’s former welfare minister Frank Field is one of a growing number of Parliamentary voices which are demanding reform. The report says: “The overwhelming consensus, and the view of the Pensions Commission, appears to be that the resources alloc- ated to tax relief could be focused better. We strongly recommend that the Government looks again at the case for reviewing tax relief on pension saving.” Richard Jacobs Pension and Trustee Services director Richard Jacobs says: “This would be the final death knell to pension saving as the tax-free lump sum is one of the biggest incentives to save. The day that civil servants give up their generous schemes is the day this can be allowed to happen.”
After three weeks in sunny Cuba smoking dodgy cigars, sipping mojitos and eating bad communist food you can imagine my delight when the FSA’s quality of advice TCF mystery shopping report landed on my desk on my first day back. Oh what sweet joy.
The FSA has publicly reprimanded a mortgage broker for failing customers. In the first such disciplinary case against a senior manager of a mortgage and general insurance broker, the regulator found Essential Mortgages Limited chief executive Steven Leslie Davis to have “fallen well below acceptable standards in the way that he carried out his duties […]
Mansfield Building Society is celebrating two of its figureheads reaching their 40th and 25th anniversaries with the firm. Product manager Pete Doherty, not to be confused with the Babyshambles star, has been working at Mansfield for 40 years while chief executive David Fisher has clocked up 25 years. Staff celebrated in true mutual style by […]
Abbey wants to more than double its annual-premium pension and investment business to over £2bn in the next 18 months. It is seeking to increase its number of branch-based advisers from 350 to about 750.
What might Trump’s policy proposals mean for markets and key components of the US economy going forward? The questions outnumber the answers at present. Loomis Sayles Macro Strategies takes a look at the impacts of the US election. Click here
News and expert analysis straight to your inboxSign up
Latest from Money Marketing
There are numerous trip hazards with carry forward but more clients will want to be looking at it Many believe the annual allowance will be fair game for the chancellor soon, as one of the least painful and least complex reductions in cost to the Treasury. As such, the need to contribute while clients can and […]
The world is a challenging place for a traditional one-man (or -woman) band Increased regulation and rising costs are leading to a growing number of mid-sized adviser firms. Sole trader and two-handed businesses are becoming rarer as changing rules and client demands present a greater challenge for smaller firms. Between compliance, technology and the implementation […]
Thirty-six months is a short time in pensions. Before April 2015, few could have predicted that compulsory annuitisation would come to an end and the door to full withdrawals would be swung open. As the pension freedoms reach their third birthday, it is worth weighing up the evidence to date. Let’s start with the good […]