Pre-Budget Report: Much to do on pensions tax restrictions, says CIOT

Pre-Budget Report: Much to do on pensions tax restrictions, says CIOT

Pre-Budget Report: Much to do on pensions tax restrictions, says CIOT

The Chancellor’s brief mention of restrictions on tax relief for pensions contributions belied the vast amount of detail and work that needs to be done to make the measures – first outlined in the April Budget – work. The restrictions are due to come into play from April 2011.

Commenting, John Whiting, Tax Policy Director at the CIOT, said:

“We have said from the outset that these measures will be overly complex for the amounts involved. This is borne out by the 100+ pages of the consultation document that emerged with the Pre-Budget Report, as well as the tweaks to the already complex ‘anti-forestalling’ measures. We have in the past suggested that a simpler and fairer route would be to reduce the annual ‘cap’ on pensions contributions.

“Employers, employees and especially the pensions industry have a lot of work to do to make these measures work as apparently intended.”

Notes to editors

The Chartered Institute of Taxation (CIOT) is a charity and the leading professional body in the United Kingdom concerned solely with taxation. The CIOT’s primary purpose is to promote education and study of the administration and practice of taxation. One of the key aims is to achieve a better, more efficient, tax system for all affected by it – taxpayers, advisers and the authorities.

The CIOT’s comments and recommendations on tax issues are made solely in order to achieve its primary purpose: it is politically neutral in its work. The CIOT will seek to draw on its members’ experience in private practice, government, commerce and industry and academia to argue and explain how public policy objectives (to the extent that these are clearly stated or can be discerned) can most effectively be achieved.

The CIOT’s 14,900 members have the practising title of ‘Chartered Tax Adviser’.

– ENDS –

George Crozier
External Relations Manager

D: +44 (0)20 7340 0569
M: +44 (0)7740 477374

The Chartered Institute of Taxation
Registered charity number 1037771
www.tax.org.uk