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Osborne warned tax relief overhaul risks ‘pensions implosion’


Government plans to overhaul tax incentives risk a “pensions implosion” that could undermining saving in the UK, the National Association of Pension Funds has warned.

Policymakers are considering options to radically reform pension tax relief. One option being considered by Chancellor George Osborne would see pensions taxed in a similar way to Isas, with savers subject to tax on contributions rather than withdrawals.

The Treasury could also introduce a flat rate of pension tax relief, tweak existing annual and lifetime allowance limits, or leave the system as it is.

Speaking at the NAPF annual conference in Manchester today, NAPF chairman Ruston Smith accused the Government of having an “ulterior motive” for pursuing reform – raising short-term tax revenues.

He added: “If the Government gets its way on reforms to pension tax relief we could see the recent wave of change with the pensions revolution becoming a pensions implosion.

“Tax change that could literally dig up and smash the foundations is set to create a society of lifetime savers, putting pressure back on our ageing society.”



Stephen Womack: Osborne must listen to pension tax relief views

Treasury officials will be working overtime in the next few weeks digesting the responses to the latest consultation on pension tax relief, which closed last week. Chancellor George Osborne has asked whether today’s model of tax-free contributions and growth, then taxed pension income, is still the best way to encourage a healthy savings culture. You […]


MM Wired: What next for pension tax relief?

Thursday 08 October 2015, 10am. Subject:What next for pension tax relief? Sponsor: Royal London The Government has fired the starting gun on the next big reform to shake up the pensions market – pension tax relief. Having decided the current model of pension taxation looks unsustainable, politicians and policymakers are now trying to decide the […]


John Lawson: The delicate balancing act of pension tax relief reform

To change to a new regime of pension tax relief, we would have to find a method (or methods) of dealing with benefits accrued under the old system. There are two potential ways to do this: to grandfather benefits already accrued, or to transfer existing benefits into the new world. Grandfathering is the traditional method of […]

Apfa: The dangers of a radical pension tax relief overhaul

Summer saw a flurry of FCA papers on everything from capital adequacy requirements to smarter consumer communications and, of course, the announcement of a Financial Advice Market Review. There is plenty going on in terms of regulatory developments. However, it would be a mistake for advisers to take their eye off the pension reform ball […]

Artemis Monthly Distribution Fund: positioning and outlook

Managers James Foster and Jacob de Tusch-Lec outline the fund’s investment approach and discuss current investment themes and outlook for the bond and equity markets. As James and Jacob confirm, the Artemis Monthly Distribution Fund’s aim is to generate an income from both equities and bonds. They explain their investment approach in each asset class, the sectors where they are […]


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