View more on these topics

MPs press for rethink over pension relief

The Treasury select committee has called on the Government to monitor the effect of the removal of tax relief on pension contributions for high-earners and consider an alternative if it has a negative impact on pension savings.

In its Budget report published last week, the select committee said the Treasury should consider introducing a cap on annual contributions as an alternative to the tax relief move.

It says: “We note that this Budget marks a departure from the long-standing principle that tax relief for pension contributions should be given at an individual’s highest marginal rate.

“We urge the Treasury to monitor the effect of these changes on pension savings and to keep under review the possibility that a cap on annual contributions might be a more equitable way of reducing the percentage of tax relief that benefits the highest-earners.”

The TSC also called on the Government to report on the revenue raised from the 50 per cent income tax rate in the 2011 pre-Budget report and to assess the yield obtained from the higher rate against its disadvantages.

It expressed concerns over how Chancellor Alistair Darling chose the threshold of 150,000 and the 50 per cent rate saying he “lacked a robust basis”.

The report also rallied the Government to work up contingency plans to finance national debt if the gilt markets fail.

“There are strong reasons why the costs of financing the Government debt could remain low. But if the gilt market were to lose its appetite for Government debt – by no means impossible – the cost of financing that debt could climb to perilous levels.”

Ruth Whitehead Associates principal Ruth Whitehead says: “The Treasury Select Committee is being too cautious. Saving into a pension is still tax-efficient. Basic-rate tax relief remains an important option even though it is lower. This negative spin contributes to a lack of confidence and prevents our economy recovering more quickly.”


Sales boosted by a sunny April

British retail sales rose in April thanks to the effects of some sunshine and Easter.According to the British Retail Consortium Retail (BRC) Sales Monitor, like-for-like British retail sales (which do not include sales from new shops) rose 4.6% in April compared with the same month last year. Putting the figures into context, the BRC says […]

Voyage of the Beagles

The past eight weeks have seen an incredibly strong rally in global stock markets. For example, since the Standard Life UK equity recovery fund – which I featured in these pages – launched in early March, it has risen by 50 per cent. That is an astonishing move in such a short space of time but should we all now jump on the bandwagon?

Mary Stewart

Training to be a vet is not the most conventional route into financial services but Hornbuckle Mitchell’s marketing director Mary Stewart began her working life caring for animals. After four years as a vet, she decided to try her hand at sales and marketing as she had always been interested in business so she joined Mars to promote a range of prescription foods for cats and dogs to vets.

Tax year-end planning for annual allowance

Last tax year-end there was a lot to think about in relation to planning. The introduction of the tapered annual allowance and the implications of moving to a fixed pension input period, the reduction in the lifetime allowance and potentially applying for protection, and the concern about changes to tax relief, to name a few. […]


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