View more on these topics

Napf plea to MPs to rethink pension tax

The National Association of Pension Funds has written to MPs to urge them to rethink the pension tax changes announced in the Budget, saying they will have a negative impact on pension savings.

It says that although these proposals are aimed at the UK’s 230,000 highest-earners, the impact is likely to be felt by more modest-earners in the medium term.

The Napf is concerned that, having broken the principle on which pensions have been based for higher-earners, there is a risk that future Governments will make the same changes for lower-earners.

It says the proposals break the tax simplification framework introduced by the Government in 2006 and that constant changes to legislation can do nothing but undermine scheme sponsor confidence in pensions.

The association also expressed doubts that the Budget measures will raise the 3.1bn in additional tax revenue HM Treasury predicts as individuals seek more tax-efficient ways to save and companies look to new ways to reward higher paid staff.

Napf chief executive Joanne Segars says: “The Budget changes send out the wrong messages on pension saving.

“The Government must think again about the wider impact of the new measures as the changes are likely to affect more than just top-rate taxpayers.

She adds: “The Government’s proposals break a long-established principle tax policy in this country and the constant instability in legislation does nothing to help rebuild badly needed confidence in pensions.”

Last month, the Treasury select committee 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, the select committee said the Treasury should consider introducing a cap on annual contributions as an alternative to the tax relief move.


Manager focus: Bradley George

Investec Asset Managements Enhanced Natural Resources funds has outperformed its competitors as a result of its short exposure. Over the past year to May 30, the fund fell 0.71%, while the JPM Natural Resources fell 32.68% and First State Global Resources dropped 33.17%, according to Morningstar. Bradley George, who manages the fund alongside George Cheveley, […]

What exactly is product innovation?

By Fiona Tait, Pensions Specialist Ros Altmann reportedly hoped for more product innovation following pension freedom¹ and, according to one poll, 66 per cent of advisers also believe that providers should be doing more². This article considers whether there is a real client need for new products, or whether we should be focusing our attention on efficient delivery […]


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