UK firms 'must plan ahead' for pension tax relief changes

Forthcoming changes to the country's pension tax relief rules should be taken into account by businesses in the near future, it has been said.

Firms might have to adapt their current employee benefits packages, Hymans Robertson suggests, in order to respond to the government's plans to cut back on the pension tax relief enjoyed by workers with larger earnings.

The firm's Partner Chris Noon believes the proposed rules appear quite complicated.

However, he stated: "Subject to any anti-avoidance legislation, alternative savings vehicles that are more tax-efficient do exist for high earners that are not difficult to implement."

Mr Noon added: "These include share incentive plans, EFRBS and Sharesave schemes."

When it comes to the issue of tax, Unbiased.co.uk recently suggested that pension savers could benefit from a greater amount of tax relief by making Additional Voluntary Contributions.

It believes that this year could see tax relief of £742 million wasted by people because they are not making such contributions.

Posted by Liam Tomlinson.