Personal Tax: Pensions reform under fire
The CIOT has urged the Government to defer proposed legislation to restrict pensions tax reliefs for higher earners and reflect on whether the proposed method of meeting its policy objective is the right one.
Responding to a 115-page consultation paper issued at PBR 2009 the CIOT warned of 'disproportionate complexity and significant administrative burdens' for HMRC as well as individuals businesses and pensions administrators. The ICAEW Tax Faculty warned of 'very high' compliance burdens and called for a requirement that employers identify employees on incomes of £130 000 or more to be dropped. The tax bodies' submissions echoed severely critical responses from pension sector organisations and the Institute for Fiscal Studies.
The Special Annual Allowance Charge (Variation of Rate) Order SI 2010/572 amends the rate of the charge for 2010/11 onwards to reflect the 50% additional tax rate. The charge will...
