UK - Government proposals to simplify the tax regime for pension schemes have been put back a year following pressure from within the industry.
The new regime will be implemented from April 2005 – rather than April 2004 as originally mooted in the Inland Revenue’s tax simplification paper.
The government’s decision to delay reform has been welcomed by the industry, which had stressed the need for more time to prepare for the new simplified regime.
Watson Wyatt partner Colin Singer said: “This is a very sensible move and it is pleasing to see the government is listening.
“With the many and difficult issues that all those involved in the pensions industry are currently facing, it is important that there is time for schemes to prepare for the Revenue’s largely positive proposals.”
Scottish Life’s head of pensions strategy Steve Bee added: “At long last we have had an announcement from the government telling us when A-Day will be.
“Knowing that the government will implement the new simplified regime for taxing pensions from April 2005 is massive for the industry.”
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