UK - Inland Revenue proposals to simplify the taxation of pensions will face strong opposition, a financial services group claims.
Grosvenor House chief executive Paul Cadde says that Inland Revenue proposals to remove concessions that apply to SSAS and SIPP investments run directly counter to the financial advisers and employers who use these investments.
Cadde said: “The Association of Pensioneer Trustees and Association of Consulting Actuaries will both be lobbying for significant changes.
“I believe many large insurance companies with significant investment in SSASs and SIPPs, will also use their financial muscle to ensure the moves do not see the light of day.”
He believes the government’s proposals, in their present form, are likely to result in a decrease in pension saving.
He explained: “With the new pensions regime lifetime limit of £1.4m, directors will be far less likely to invest in pensions until very close to retirement to ensure they do not face a 33% tax penalty simply because of good fund growth.
“Even without any fund growth directors could maximum fund their pension in just seven years.
“And if they do not fund their own pensions it’s also unlikely they will consider funding pensions for their staff.”
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