Skandia has called on the Treasury to extend tax relief on advice for employees given through the workplace.
In December 2004 the Government introduced an income tax exemption for workplace advice, paid for by the employer, where the cost of advice per employee is £150 a year or less. Workplace advice that costs more than £150 a year per employee is treated as a taxable benefit.
In its pre-Budget submission to the Treasury, Skandia calls for the threshold to be doubled to at least £300.
Skandia retirement product lead Bob Champion says: “As a person’s workplace becomes their major reference point with regard to their pension, it makes sense for the employer to be able to help their employees get access to quality advice.
“Extending the tax relief available could encourage more employers to engage with the process and ensure more of their employees receive a better financial outcome, in retirement in particular.”