The Pensions Management Institute has given a broad welcome to
the Inland Revenue's pension simplification proposals but says it is
concerned at the decision not to link the lifetime limit and annual
allowances to wage but price inflation.
PMI external affairs committee Nigel Body says: “The PMI welcomes
a number of the proposal released by the Inland Revenue but those
affecting high earners are more of a mixed bag. The reduction of the
recovery charge to 25 per cent from 33 per cent and the removal of
the prospect of retrospective taxation are to be welcomed.
“But the decision not to link the lifetime limit to national average
earnings will increasingly encroach on middle income earners rather
than catch a minority of high earners.”