Budget response: Pension tax relief review strongly endorsed by CIOT
The announcement in the Budget that the changes to pensions tax relief due from April 2011 are to be re-examined has been strongly endorsed by the CIOT.
CIOT Tax Policy Director John Whiting said:
“We, the pensions industry and taxpayers generally understand that pensions tax relief is going to be curtailed. Our argument from the start is that there has to be a simpler way than the absurdly over-complex system pushed through by the previous government. The cost of implementing the changes in rules was estimated at some £900m.
“Our suggestion has always been that a simple and pragmatic deep cut in the annual contribution limit was the way to go and we are very pleased to see the Chancellor is going to look properly at this route.”
Notes to Editors
1. 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 15,000 members have the practising title of ‘Chartered Tax Adviser’.
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George Crozier
External Relations Manager
D: +44 (0)20 7340 0569
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The Chartered Institute of Taxation
Registered charity number 1037771
www.tax.org.uk
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