CIOT 'disappointed' by govt pension tax relief plans

Forthcoming changes to the amount of tax relief higher earners are able to receive on their pension savings could lead to larger costs, it has been highlighted.

Government plans to limit this tax relief next year have not been welcomed by the Chartered Institute of Taxation (CIOT).

Employment Taxes Sub-Committee Chairman of the organisation Colin Ben-Nathan believes that the overall pensions industry will be impacted by the proposed changes.

"The government's proposed method of restricting tax relief will cause disproportionate complexity and an increase in the costs for employers, pension scheme[s] and the pensions industry as a whole," he commented.

Mr Ben-Nathan went on to point out the CIOT's view that the existing proposals put forward by ministers may not even be workable in practice.

However, the CIOT has welcomed another element of the Chancellor's recent financial Budget, with the organisation backing plans to extend Gift Aid relief.

Posted by Liam Tomlinson.