Employee reward and benefits news
Government changes to pension taxation welcomed by CIOT
The proposed pensions tax relief changes put forward by the government have been welcomed by the Chartered Institute of Taxation (CIOT), though it remained cautious as issues still need to be resolved to "make them workable".
CIOT responded directly to a government discussion paper that set out a number of alternative approaches to Labour's previous Budget and Finance Act of 2010, which had been heavily criticised by the CIOT over its complex nature.
"We have always argued that the original proposals to restrict tax relief would cause disproportionate complexity and significant administrative burdens on individuals, businesses, pensions administrators and HM Revenue & Customs," said Colin Ben-Nathan, the chair of CIOT's Employment Taxes Sub-Committee.
He added that lowering the annual allowance allows the government to achieve its policy goals whilst "maintaining certainty and fairness".
The CIOT maintains political neutrality and fairness and is a charity, drawing its experience from key figures in private practice, government, academia and commerce.
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Posted by Elizabeth Mewes
