STRENGTHENING THE INCENTIVE TO SAVE: A CONSULTATION ON PENSIONS TAX RELIEF

Size: px
Start display at page:

Download "STRENGTHENING THE INCENTIVE TO SAVE: A CONSULTATION ON PENSIONS TAX RELIEF"

Transcription

1 STRENGTHENING THE INCENTIVE TO SAVE: A CONSULTATION ON PENSIONS TAX RELIEF Response by the Association of Taxation Technicians 1 Introduction 1.1 The Association of Taxation Technicians (ATT) is pleased to have the opportunity to respond to the consultation document Strengthening the incentive to save: a consultation on pensions tax relief ( the Consultation ) published H M Treasury (HMT) on 8 July We will respond to the detailed consultations questions at section 3 of this response, but we would first like to start with some comments and observations on the Consultation document itself. 2 Comments on the Consultation document 2.1 The paper produced by HMT appears to be biased towards larger organisations and seems to completely ignore the self-employed who now form a major sector of the UK economy. 2.2 In our opinion, the comments made at paragraphs 1.3 and of the Consultation are out of date as defined benefit schemes have been too expensive for most SME businesses since the 1970s and have never been available to the self-employed. 2.3 The Consultation makes the point, at paragraph 1.10, that individuals are now living and working for longer with the assumption being that individuals therefore now have the capacity to save more during their longer working life. We would actually challenge this assumption. If you look at a person s expectation of a working life back in the 1950s they would generally start work at 15 years of age and retire at 65 years of age, equating to a working life of 50 years. Today, education generally lasts until at least 18 years of age (and higher for university students). Coupled with an increased retirement age of 68, this still allows for a working life of 50 years. On the whole, people today have just the same amount of time to save towards retirement as they did back in the 1950s. Registered in England and Wales Registered Office: 1st Floor, Artillery House, Artillery Row, London SW1P 1RT A company limited by guarantee: Number Registered as a charity: Number VAT Registration: Number

2 2.4 There seems to us to be a number of contradictions made in the Consultation. For example, paragraph 2.6 states that: Over two thirds of pensions tax relief currently goes to higher and additional rate taxpayers This statement does not seem to be consistent with the statement at paragraph 2.5 that the rising cost of pension s tax relief is notably due to employer contributions. One of the reasons that most relief might go to wealthy taxpayers is that they are the only ones who can afford to make large contributions something we will discuss in more detail at section 3.1 below. We also suspect that few claimants of Tax Credits correctly claim for pension contributions and the education around this needs to be improved. 3 Our responses to the questions 3.1 Question 1: To what extent does the complexity of the current system undermine the incentive for individuals to save into a pension? We do not believe that the issue of complexity is the reason individuals are not motivated to save into a pension. We believe there are more relevant factors: In recent years there have been so many changes to the pensions system that people have lost confidence. It has created a lot of uncertainty and does cause people to question whether the pension rules could change after they ve put their money into them. People are worried they won t get their promised tax-free lump sum. All of the recent changes are putting people off Affordability is also a big factor for the group that the Government are trying to capture basic rate earners aged between years. This group of people often have other commitments on their income such as student loan repayments, getting on the housing market, or starting a family. If the choice for someone is between food, a roof, Iight and heat or a pension, then clearly a sensible person will choose to live now and worry about the future in due course. We think it will be very hard for the Government to overcome these issues and find any way of motivating this group of people to save more. Automatic Enrolment does help here but only to a very limited extent. If someone does not have the money to spare, they just aren t in a position to save As well as looking at the incentive for individuals to save, we must also consider the incentive for financial advisers and brokers to sell pensions to the mass market. This incentive has been seriously eroded ever since the changes in 2013 which prohibited advisers from being remunerated from group money purchase schemes and made it impossible to advise the mass market on pensions unless they were prepared to pay professional fees. As many individuals were not willing to pay this, advisers began to focus on providing their services where they could be sufficiently rewarded for their time, effort and expertise, resulting in excluding a large part of P/ATTTSG/Submissions/2015 2

3 society from pension saving. The Government needs to understand the impact that recent regulatory changes have had on the willingness of advisers to sell pensions to the wider public The time when, perhaps, the greatest take-up of pensions occurred was back in the late 1980s when the Government carried out a prolonged period of advertisement on TV, radio and in newspapers that lasted for about 3 years. In recent years there has been mainly only negative press coverage of pensions that has left many people with a poor perception of pensions. The Government needs to find a way to reverse this perception. 3.2 Question 2: Do respondents believe that a simpler system is likely to result in greater engagement with pension saving? If so, how could the system be simplified to strengthen the incentive for individuals to save into a pension? Our comments at also apply in response to question We would add that greater engagement is not always achieved by making something simpler. In this case in particular it will be more important to achieve a prolonged period of consistency in the pension system and to try to avoid the constant changing of the rules that has been occurring under successive Governments. An agreement by all parties to work towards a sustainable pensions system that will remain unchanged for a significant period of time could help greatly to achieve incentivising people to become more engaged with pensions However, we would note that some financial advisers are backing away from providing pensions advice due to the added complexity and the fear of getting something wrong and being held accountable for it. Those that are willing to offer advice are usually only doing so where it is cost effective for them (as already outlined at section 3.1.3) and so advising higher earners who are making larger contributions. If the regulatory environment were to change this would encourage advisers to promote and sell more pensions. 3.3 Question 3: Would an alternative system allow individuals to take greater personal responsibility for saving an adequate amount for retirement, particularly in the context of the shift to defined contributions pensions? As we have noted at section 2.2, the shift to defined contributions schemes started back in the 1970s so this is not a recent shift and the comments in this Consultation appear to be somewhat out of date. Indeed, there are hardly any defined contribution schemes, if any at all, that remain open to new members in the private sector. This is completely the opposite in the public sector and does create a growing disparity between the two sectors. At present the law prevents some public sector organisations, such as education establishments, from doing what many businesses in the private sector have had to do to reduce costs and that is close membership to the defined benefit scheme to new members and offer them a defined contribution scheme instead. Unless the law changes in this area, it will be very difficult to achieve a level playing field. P/ATTTSG/Submissions/2015 3

4 3.3.2 We do not see what alternative system could encourage individuals to take greater personal responsibility. It would be just as worthwhile for the Government to find better ways to educate people on the current system and perhaps consider a publicity campaign in the same vein as the one carried out back in the 1980s (as mentioned at section 3.1.4) However, some people will always have a short-term focused attitude. Such people would need to be making different lifestyle choices now (such as not going into higher education and taking out a student loan; not buying such an expensive house; not having a second or third child) so as to afford pension savings. Some people are just not willing to sacrifice their lifestyle and life choices now for a potential future retirement. 3.4 Question 4: Would an alternative system allow individuals to plan better for how they use their savings in retirement? Our comments at sections also apply in response to this question We would also add that recent changes to the pensions system have not yet had time to bed in so we haven t had chance to see the effect yet Many people have now turned their back on pensions and see property investment as their pension pot instead. As a way of reversing the perception of pensions, as mentioned in section 3.1.4, the Government might want to consider allowing residential property to be a permissible pension fund asset and this might prove to be a way of drawing people back into pension savings. 3.5 Question 5: Should the Government consider differential treatment for defined benefit and defined contribution pensions? If so, how should each be treated? No, there should not be differential treatment for defined benefit and defined contribution pensions. If there is not an equilibrium the danger is that this difference could be exploited by parts of the tax planning industry. This in turn could lead to more anti-avoidance measures and further change to the pensions system which would not be conducive to creating a sustainable and stable system aimed at restoring public confidence in the pensions system. 3.6 Question 6: What administration barriers exist to reforming the system of pension s tax, particularly in the context of automatic enrolment? How could these best be overcome? Automatic enrolment as a system is quite straightforward to understand and operate, with the exception of the regulatory burdens that accompany the scheme. We understand that some advisors have tried to avoid getting involved with Automatic Enrolment cases due to the fact that the rules kept changing up until quite recently. This made it very difficult to advise clients on the scheme. Stability in this area is also recommended in order to allow employers and advisers P/ATTTSG/Submissions/2015 4

5 the time to properly get to grips with the rules. This is particularly important as the full impact of Automatic Enrolment is yet to be felt by all UK employers The requirements of Automatic Enrolment also seem excessive when applied to very small firms. Many small employers just don t find it possible to read and digest all of the information that comes with the opening of a scheme. The costs of running millions of schemes with no or very low contributions will, in due course, impact upon the effectiveness of the scheme Finally, another major barrier that we would mention that is not to do with Automatic Enrolment is all of the different rules that affect historic pensions. Any reform ought to sensibly address all of these different rules. 3.7 Question 7: How should employer pension contributions be treated under any reform of pension tax relief? We believe that this is a balancing act and are not sure we can provide a definitive answer. We can envisage that treating employer contributions more favourably than an employee contribution could lead to planning that may be seen as unacceptable to the Government and HMT However, it is also important that we keep employers engaged with pension savings, especially as there may already be an issue in that employers will themselves generally be higher earners and might be becoming more disengaged (on a personal level) as their own personal pension savings are restricted. It would also be a major disincentive for employers who pay Corporation or Income Tax to have to pay pension contributions out of taxed income, and a significant increase in the effective costs to a business of providing a pension scheme A related point to consider is that, under the current system, individuals are taxed on their employer s contributions if they exceed the annual allowance. The current concern is that more and more people will fall into this charge with the restriction in the annual allowance for higher earners. Unless this is addressed or reformed in some way, we are concerned that it could lead to significant disengagement with pensions. 3.8 Question 8: How can the Government make sure that any reform of pension s tax relief is sustainable for the future? We do not think that a change to a Tax-Exempt-Exempt system would be sustainable. Initially, it might help to boost the Exchequer with tax on contributions but in the longer-term there would be many pensioners drawing tax-free pensions and not contributing anything to the tax system. We believe a change to this kind of system would only be storing up problems for the future. A Tax-Exempt-Exempt system would be difficult to administer for a defined benefit scheme. For instance, how would employer contributions be valued for each member and how would deficit funding be treated? In addition, we don t see how taxing contributions up front is going to encourage people to save more, especially given the affordability issues discussed at P/ATTTSG/Submissions/2015 5

6 3.8.2 The key factor, as we see it, in making pensions sustainable for the future is restoring public confidence and this can only really be done, as already highlighted at section 3.2.1, with a long period of stability. 4 Other considerations Here we add a few further points for consideration. 4.1 If pension savings become unattractive to the higher earners, they will simply switch to other tax incentive schemes. Therefore, there does need to be some joined up thinking between all tax incentive schemes (ie EIS,VCT,ISAs) to ensure that there is a common policy intention. 4.2 We would like to note the issue with the current requirements for advisors to produce and explain pension illustrations. These documents can be very lengthy and extremely off-putting to potential savers. If the regulatory framework, administration and paperwork associated with pensions were to be reviewed then there may be no requirement to change the actual system itself. The actual paperwork presented to savers may be causing a very high level of disengagement and, therefore, a disincentive to save. 4.3 There are still many employees in defined contribution schemes who are not aware that they are entitled to claim higher rate tax relief. As tax advisors, we deal with lots of cases where employees come to us for general tax advice and we are able to reclaim multiple years worth of higher rate tax relief on pension contributions. There must, therefore, be many more cases where that relief goes unclaimed. Again, as a way to improve the perception of pensions, it might be a good idea for the Government to run a campaign to highlight and remind higher rate taxpayers of this benefit to pensions. 5 Summary 5.1 We have provided our comments and responses to the Consultation questions and hope that these are of use to HMT. To summarise, the current system has been discredited and undermined by the constant changing of the rules that has occurred over a number of years by successive Governments. This has destroyed public confidence in the system and goes a long way to explaining why individuals might not be motivated to save towards a pension. However, other commitments on people s personal finances do have to be taken into account. For example, the significant increase in student loan repayments over recent years means that an individual is likely to be much further into their working life before they can adequately afford P/ATTTSG/Submissions/2015 6

7 to make pension contributions probably only once they have finished paying off their student loans. A brief review of pension systems operated by other countries has shown us that there is no one ideal scheme that will address all the issues that exist. However, it might be that the UK can learn from the examples in Denmark, Australia and the Netherlands who have all scored highly when it comes to adequacy, sustainability and integrity of their pensions system. Whatever system is chosen will need to be a compromise to be acceptable to Government, providers and taxpayers. 5.2 Contact details: Should you wish to discuss any aspect of these comments, please contact our relevant Technical Officer, Alison Ward, on or at Yours sincerely Paul Hill Chairman, ATT Technical Steering Group 6 Note The Association is a charity and the leading professional body for those providing UK tax compliance services. Our primary charitable objective is to promote education and the study of tax administration and practice. One of our key aims is to provide an appropriate qualification for individuals who undertake tax compliance work. Drawing on our members' practical experience and knowledge, we contribute to consultations on the development of the UK tax system and seek to ensure that, for the general public, it is workable and as fair as possible. Our members are qualified by examination and practical experience. They commit to the highest standards of professional conduct and ensure that their tax knowledge is constantly kept up to date. Members may be found in private practice, commerce and industry, government and academia. The Association has over 7,700 members and Fellows together with over 5,600 students. Members and Fellows use the practising title of 'Taxation Technician' or Taxation Technician (Fellow) and the designatory letters 'ATT' and 'ATT (Fellow)' respectively. P/ATTTSG/Submissions/2015 7

EMPLOYMENT INTERMEDIARIES: TEMPORARY WORKERS RELIEF FOR TRAVEL AND SUBSISTENCE EXPENSES

EMPLOYMENT INTERMEDIARIES: TEMPORARY WORKERS RELIEF FOR TRAVEL AND SUBSISTENCE EXPENSES EMPLOYMENT INTERMEDIARIES: TEMPORARY WORKERS RELIEF FOR TRAVEL AND SUBSISTENCE EXPENSES Response by the Association of Taxation Technicians 1 Introduction 1.1 The Association of Taxation Technicians (ATT)

More information

THE ABOLITION OF CLASS 2 NATIONAL INSURANCE: INTRODUCING A BENEFIT TEST INTO CLASS 4 NATIONAL INSURANCE FOR THE SELF-EMPLOYED

THE ABOLITION OF CLASS 2 NATIONAL INSURANCE: INTRODUCING A BENEFIT TEST INTO CLASS 4 NATIONAL INSURANCE FOR THE SELF-EMPLOYED THE ABOLITION OF CLASS 2 NATIONAL INSURANCE: INTRODUCING A BENEFIT TEST INTO CLASS 4 NATIONAL INSURANCE FOR THE SELF-EMPLOYED Response by the Association of Taxation Technicians 1 Introduction 1.1 The

More information

FREEDOM AND CHOICE IN PENSIONS

FREEDOM AND CHOICE IN PENSIONS FREEDOM AND CHOICE IN PENSIONS Response by the Association of Taxation Technicians 1 Introduction 1.1 The Association of Taxation Technicians (ATT) is pleased to have the opportunity to respond to the

More information

REVIEW OF EMPLOYEE BENEFITS AND EXPENSES: DRAFT LEGISLATION

REVIEW OF EMPLOYEE BENEFITS AND EXPENSES: DRAFT LEGISLATION REVIEW OF EMPLOYEE BENEFITS AND EXPENSES: DRAFT LEGISLATION Response by the Association of Taxation Technicians 1 Introduction 1.1 The Association of Taxation Technicians (ATT) is pleased to have the opportunity

More information

EMPLOYEE BENEFITS AND EXPENSES REAL TIME COLLECTION OF TAX ON BENEFITS IN KIND AND EXPENSES THROUGH VOLUNTARY PAYROLLING

EMPLOYEE BENEFITS AND EXPENSES REAL TIME COLLECTION OF TAX ON BENEFITS IN KIND AND EXPENSES THROUGH VOLUNTARY PAYROLLING EMPLOYEE BENEFITS AND EXPENSES REAL TIME COLLECTION OF TAX ON BENEFITS IN KIND AND EXPENSES THROUGH VOLUNTARY PAYROLLING Response by the Association of Taxation Technicians 1 Introduction 1.1 The Association

More information

FINANCE (NO 2) BILL 2016: CLAUSE 72, SCHEDULES 11 & 12 REDUCTION IN THE RATE OF CAPITAL GAINS TAX

FINANCE (NO 2) BILL 2016: CLAUSE 72, SCHEDULES 11 & 12 REDUCTION IN THE RATE OF CAPITAL GAINS TAX FINANCE (NO 2) BILL 2016: CLAUSE 72, SCHEDULES 11 & 12 REDUCTION IN THE RATE OF CAPITAL GAINS TAX Response by the Association of Taxation Technicians 1 Introduction 1.1 The Association of Taxation Technicians

More information

Association of Accounting Technicians response to Strengthening the incentive to save: a consultation on pensions tax relief

Association of Accounting Technicians response to Strengthening the incentive to save: a consultation on pensions tax relief Association of Accounting Technicians response to Strengthening the incentive to save: a consultation on pensions tax relief 1 Association of Accounting Technicians response to Strengthening the incentive

More information

IMPROVING ACCESS TO R&D TAX CREDITS FOR SMALL BUSINESS

IMPROVING ACCESS TO R&D TAX CREDITS FOR SMALL BUSINESS IMPROVING ACCESS TO R&D TAX CREDITS FOR SMALL BUSINESS Response by the Association of Taxation Technicians 1 Introduction 1.1 The Association of Taxation Technicians (ATT) is pleased to have the opportunity

More information

How to improve HMRC s collection of debt: coding out. Response by the Association of Taxation Technicians

How to improve HMRC s collection of debt: coding out. Response by the Association of Taxation Technicians How to improve HMRC s collection of debt: coding out Response by the Association of Taxation Technicians 1 Introduction 1.1 The Association of Taxation Technicians (ATT) is pleased to have the opportunity

More information

RAISING THE STAKES ON TAX AVOIDANCE: DRAFT LEGISLATION

RAISING THE STAKES ON TAX AVOIDANCE: DRAFT LEGISLATION RAISING THE STAKES ON TAX AVOIDANCE: DRAFT LEGISLATION Response by the Association of Taxation Technicians 1 Introduction 1.1 The Association of Taxation Technicians (ATT) is pleased to have the opportunity

More information

The Money Charity is the UK s leading financial capability charity.

The Money Charity is the UK s leading financial capability charity. The Money Charity is the UK s leading financial capability charity. We believe that being on top of your money means you are more in control of your life, your finances and your debts, reducing stress

More information

Financial Services Consumer Panel response to the consultation on pensions tax relief

Financial Services Consumer Panel response to the consultation on pensions tax relief Telephone: 020 7066 5268 Email: enquiries@fs-cp.org.uk Pensions and Savings Team HM Treasury 1 Horse Guards Road London SW1A 2HQ 30 September 2015 Dear Sir, Madam, Financial Services Consumer Panel response

More information

LEGAL & GENERAL HOME FINANCE. Guide to Lifetime Mortgages

LEGAL & GENERAL HOME FINANCE. Guide to Lifetime Mortgages LEGAL & GENERAL HOME FINANCE Guide to Lifetime Mortgages A lifetime mortgage could give you the freedom to really enjoy your retirement. We re delighted you re finding out more about lifetime mortgages.

More information

Simplification of the Tax and National Insurance Treatment of Termination Payments Response by the Chartered Institute of Taxation

Simplification of the Tax and National Insurance Treatment of Termination Payments Response by the Chartered Institute of Taxation Simplification of the Tax and National Insurance Treatment of Termination Payments Response by the Chartered Institute of Taxation 1 Introduction 1.1 The Chartered Institute of Taxation (CIOT) sets out

More information

PPI PRESS RELEASE FOR IMMEDIATE RELEASE

PPI PRESS RELEASE FOR IMMEDIATE RELEASE Tax relief offers important advantages to pension savers, but does little to encourage pension saving, particularly among low and medium earners says Pensions Policy Institute The Pensions Policy Institute

More information

Age 75 Annuities Consultation. Response from Dr. Ros Altmann 9 th September 2010

Age 75 Annuities Consultation. Response from Dr. Ros Altmann 9 th September 2010 Age 75 Annuities Consultation Response from Dr. Ros Altmann 9 th September 2010 The Government has issued a consultation on its proposals to reform the Age 75 rules for mandatory annuity purchase from

More information

Strengthening the incentive to save: a consultation on pensions tax relief. RESPONSE FROM ICAS TO HM Treasury

Strengthening the incentive to save: a consultation on pensions tax relief. RESPONSE FROM ICAS TO HM Treasury Strengthening the incentive to save: a consultation on pensions tax relief RESPONSE FROM ICAS TO HM Treasury 30 SEPTEMBER 2015 CA House 21 Haymarket Yards Edinburgh EH12 5BH enquiries@icas.org.uk +44 (0)131

More information

LEGAL & GENERAL HOME FINANCE. Guide to Lifetime Mortgages

LEGAL & GENERAL HOME FINANCE. Guide to Lifetime Mortgages LEGAL & GENERAL HOME FINANCE Guide to Lifetime Mortgages A lifetime mortgage could give you the freedom to really enjoy your retirement. We re delighted you re finding out more about lifetime mortgages.

More information

GUIDE TO RETIREMENT PLANNING FINANCIAL GUIDE. Making the most of the new pension rules to enjoy freedom and choice in your retirement

GUIDE TO RETIREMENT PLANNING FINANCIAL GUIDE. Making the most of the new pension rules to enjoy freedom and choice in your retirement GUIDE TO RETIREMENT PLANNING Making the most of the new pension rules to enjoy freedom and choice in your retirement FINANCIAL GUIDE WELCOME Making the most of the new pension rules to enjoy freedom and

More information

With new options available from April 2015, we can help you plan your finances for a worry-free retirement

With new options available from April 2015, we can help you plan your finances for a worry-free retirement Your retirement With new options available from April 2015, we can help you plan your finances for a worry-free retirement Life is full of financial decisions and planning your retirement is one of the

More information

PENSIONS POLICY INSTITUTE. Tax relief for pension saving in the UK

PENSIONS POLICY INSTITUTE. Tax relief for pension saving in the UK Tax relief for pension saving in the UK This report is sponsored by Age UK, the Institute and Faculty of Actuaries, Partnership and the TUC. The PPI is grateful for the support of the following sponsors

More information

Nurturing your investment

Nurturing your investment helping life flow smoothly UNITED UTILITIES PENSION SCHEME Investment choices Nurturing your investment Contents Investment choices 1. A BRIEF GUIDE TO INVESTMENTS A reminder of the main different types

More information

incentive to save: a consultation on pensions tax relief Citizens Advice response

incentive to save: a consultation on pensions tax relief Citizens Advice response Strengthening the incentive to save: a consultation on pensions tax relief Citizens Advice response Executive Summary We welcome the government s decision to review tax relief on pensions and we support

More information

KEY GUIDE. Pensions and tax planning for high earners

KEY GUIDE. Pensions and tax planning for high earners KEY GUIDE Pensions and tax planning for high earners The rising tax burden on income If you find more and more of your income is taxed at over the basic rate, you are not alone. The point at which you

More information

Strengthening the incentive to save: a consultation on pensions tax relief. Response to the consultation document published on 8 July 2015

Strengthening the incentive to save: a consultation on pensions tax relief. Response to the consultation document published on 8 July 2015 Strengthening the incentive to save: a consultation on pensions tax relief Response to the consultation document published on 8 July 2015 Grant Thornton UK LLP (Grant Thornton) has considered the proposals

More information

largeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904

largeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904 largeequityrelease.com EQUITY RELEASE GUIDE Speak to one of our specialists today on 020 3824 0904 CONTENTS What is equity release?... 3 How much money could I raise through an equity release?... 4 What

More information

Financial Advice Market Review: Call for Input RESPONSE FROM ICAS TO HM TREASURY AND THE FCA

Financial Advice Market Review: Call for Input RESPONSE FROM ICAS TO HM TREASURY AND THE FCA Financial Advice Market Review: Call for Input RESPONSE FROM ICAS TO HM TREASURY AND THE FCA 18 December 2015 CA House 21 Haymarket Yards Edinburgh EH12 5BH enquiries@icas.com +44 (0)131 347 0100 icas.com

More information

Welcome to NEST. All the key information you need about being a member of NEST

Welcome to NEST. All the key information you need about being a member of NEST Welcome to NEST All the key information you need about being a member of NEST 2 Please write your NEST ID here: You ll find this number on the letter that came with this booklet. Welcome to NEST Building

More information

MORE CHOICE MORE FREEDOM

MORE CHOICE MORE FREEDOM LOOK FORWARD TO MORE CHOICE MORE FREEDOM A guide to Income Release Pension Portfolio royallondon.com WELCOME TO ROYAL LONDON We re a mutual organisation and, unlike a PLC, we don t have any shareholders

More information

Retirement Advantage response to HM Treasury - Strengthening the incentive to save: a consultation on pension tax relief

Retirement Advantage response to HM Treasury - Strengthening the incentive to save: a consultation on pension tax relief Retirement Advantage response to HM Treasury - Strengthening the incentive to save: a consultation on pension tax relief Overview and Executive Summary It is clear later life in the UK has changed dramatically

More information

KEY GUIDE. Pensions and tax planning for high earners

KEY GUIDE. Pensions and tax planning for high earners KEY GUIDE Pensions and tax planning for high earners The rising tax burden on income If you find more and more of your income is taxed at over the basic rate, you are not alone. The higher rate threshold

More information

EQUITY RELEASE GUIDE. Everything you need to know about equity release.

EQUITY RELEASE GUIDE. Everything you need to know about equity release. EQUITY RELEASE GUIDE Everything you need to know about equity release. An informative guide from the equity release specialists The informative guide to equity release... Equity release has come a long

More information

1.2 The CIOT s Environmental Taxes Working Group has previously commented on the principles of environmental taxes.

1.2 The CIOT s Environmental Taxes Working Group has previously commented on the principles of environmental taxes. Reforming the business energy efficiency tax landscape HM Treasury consultation document September 2015 Response by the Chartered Institute of Taxation 1 Introduction 1.1 The Chartered Institute of Taxation

More information

Your retirement could have even more going for it

Your retirement could have even more going for it Your retirement could have even more going for it A straightforward guide to equity release For no obligation advice: call 0800 015 0993 www.justretirementsolutions.com Contents Imagine what you could

More information

STRENGTHENING THE INCENTIVE TO SAVE: A CONSULTATION ON PENSIONS TAX RELIEF

STRENGTHENING THE INCENTIVE TO SAVE: A CONSULTATION ON PENSIONS TAX RELIEF By e mail only Pensions Consultation 2015 Pensions and Savings Team HM Treasury 1 Horse Guards Road London SW1A 2HQ 25 th September 2015 Dear Sir/Madam, STRENGTHENING THE INCENTIVE TO SAVE: A CONSULTATION

More information

Making the most of your retirement

Making the most of your retirement Making the most of your retirement A guide to equity release and our advice service Provided by Contents Welcome from the Age UK Group 3 Do more with your retirement 4 What is equity release? 5 Is equity

More information

Freedom and Choice in Pensions

Freedom and Choice in Pensions HM Treasury Freedom and Choice in Pensions Comments from StepChange Debt Charity StepChange Debt Charity London Office 6 th Floor, Lynton House, 7-12 Tavistock Square, London WC1H 9LY Policy Contact: Francis

More information

Restriction of pensions tax relief: a discussion document on the alternative approach

Restriction of pensions tax relief: a discussion document on the alternative approach Restriction of pensions tax relief: a discussion document on the alternative approach July 2010 Restriction of pensions tax relief: a discussion document on the alternative approach July 2010 Official

More information

Everything you need to know about equity release.

Everything you need to know about equity release. Everything you need to know about equity release. An informative guide from the equity release specialists Welcome to the Retiredom guide to equity release. Equity release has come a long way since regulation

More information

Is equity release the right choice for you? Protecting yourself If it isn t right for you, what are the alternatives?

Is equity release the right choice for you? Protecting yourself If it isn t right for you, what are the alternatives? Buyer s Guide : Content Page 1: What is equity release? Page 2: Is equity release the right choice for you? Page 3: Protecting yourself If it isn t right for you, what are the alternatives? Page 4: Lifetime

More information

guide to pension tax relief.

guide to pension tax relief. guide to pension tax relief. introduction tax benefits of pensions tax relief maximum contributions how to make a pension contribution what next? introduction tax benefits of pensions tax relief maximum

More information

Planning a prosperous retirement

Planning a prosperous retirement Planning a prosperous retirement Towry s Guide to Retirement Planning About Towry We are one of the UK s leading Wealth Advisers and specialise in providing high quality, expert financial advice to private

More information

TAKING CONTROL OF YOUR PENSION PLAN. The value of pension contributions

TAKING CONTROL OF YOUR PENSION PLAN. The value of pension contributions TAKING CONTROL OF YOUR PENSION PLAN If you add together all the money you have in pension arrangements, the total may well dwarf every other investment you ever make. Despite this, many people are happy

More information

Family protection made easy

Family protection made easy Family protection made easy A guide to life assurance This product is provided by Irish Life Assurance plc. AIB has chosen Irish Life, Ireland s leading life and pensions provider, to provide its customers

More information

Key Features of the Prudential Personal Pension Scheme

Key Features of the Prudential Personal Pension Scheme Key Features of the Prudential Personal Pension Scheme Important information you need to read The Financial Conduct Authority is the independent financial services regulator. It requires us, Prudential,

More information

Current Issues April 2015

Current Issues April 2015 In this issue: Pension tax: a post-election change - whoever wins Further help to buy from the government A savings tax cut Selling your pension annuity Income tax changes Pension tax: a post-election

More information

Your guide to retirement savings and fund choices

Your guide to retirement savings and fund choices Your guide to retirement savings and fund choices The Global Connections Group Personal Pension Plan for employees automatically enrolled into the plan Contents What is The Global Connections Group Personal

More information

In Debt? Dealing with your creditors Call: 0800 157 7330 or 01257 251319 www.debtproblemsuk.com

In Debt? Dealing with your creditors Call: 0800 157 7330 or 01257 251319 www.debtproblemsuk.com Debtfocus Business Recovery & Insolvency Ltd In Debt? Dealing with your creditors Call: 0800 157 7330 or 01257 251319 www.debtproblemsuk.com Content highlights Before you read this guide in detail, you

More information

Financial services mis-selling: regulation and redress

Financial services mis-selling: regulation and redress Report by the Comptroller and Auditor General Financial Conduct Authority and Financial Ombudsman Service Financial services mis-selling: regulation and redress HC 851 SESSION 2015-16 24 FEBRUARY 2016

More information

Let s talk pension flexibility The current position

Let s talk pension flexibility The current position Let s talk pension flexibility The current position 1 Let s talk pension flexibility the current position Change is coming. Budget 2014 heralded a shake-up of the pension system that will change how we

More information

Pension saving for the self employed

Pension saving for the self employed April 2014 Contact Details We can be contacted at: The Pensions Advisory Service 11 Belgrave Road London SW1V 1RB Helpline 0845 601 2923 General Office 020 7630 2250 Fax 020 7592 7000 For enquiries, please

More information

Your guide to Annuities

Your guide to Annuities Your guide to Annuities From Standard Life It s good to know what s around the next corner 1 of 24 If you would like a secure source of income and have a built up pension fund or a lump sum to invest,

More information

Customer Guide. to lifetime mortgages. more 2 choose a range of lifetime mortgage plans to suit every need

Customer Guide. to lifetime mortgages. more 2 choose a range of lifetime mortgage plans to suit every need Customer Guide to lifetime mortgages more 2 choose a range of lifetime mortgage plans to suit every need From one of the UK s largest retirement lending specialists Please speak to your adviser for further

More information

FAMILY PROTECTION MADE EASY. A guide to life assurance

FAMILY PROTECTION MADE EASY. A guide to life assurance FAMILY PROTECTION MADE EASY A guide to life assurance INTRODUCTION Your Health is your Wealth - I genuinely believe that to be true. I work in the A&E Department of a large hospital and every day I see

More information

Responding to the growing appetite for low-cost health insurance products and services

Responding to the growing appetite for low-cost health insurance products and services insurance services Responding to the growing appetite for low-cost health insurance products and services Most people love the NHS. However, state provision is increasingly at risk from the relentless

More information

Freedom and choice in pensions

Freedom and choice in pensions Freedom and choice in pensions Response from NEST Overview The recent liberalisation of the rules on decumulation present us with a welcome opportunity to think about what our members need from their pension

More information

Post Budget At Retirement Market - Qualitative Consumer Research

Post Budget At Retirement Market - Qualitative Consumer Research Post Budget At Retirement Market - Qualitative Consumer Research Commissioned by syndicate members: This report is for media use only and may not be reproduced or circulated in its entirety. Any quotes

More information

A GUIDE TO FINANCIAL GUIDE. New Pensions Freedom GIVING PEOPLE MORE CONFIDENCE TO SAVE INTO A PENSION

A GUIDE TO FINANCIAL GUIDE. New Pensions Freedom GIVING PEOPLE MORE CONFIDENCE TO SAVE INTO A PENSION FINANCIAL GUIDE A GUIDE TO New Pensions Freedom GIVING PEOPLE MORE CONFIDENCE TO SAVE INTO A PENSION WELCOME Giving people more confidence to save into a pension Welcome to our Guide to New Pensions Freedom.

More information

Debt Options Information guide

Debt Options Information guide Debt Options Information guide Debt & Money Advice Support CIC (DMAS CIC) is authorised and regulated by the Financial Conduct Authority FRN: 631799. A company registered in England & Wales 9203918. 1

More information

STELLENBSOCH UNIVERSITY RETIREMENT FUND GUIDE TO THE WITHDRAWAL PROCESS (excludig retirement on pension)

STELLENBSOCH UNIVERSITY RETIREMENT FUND GUIDE TO THE WITHDRAWAL PROCESS (excludig retirement on pension) 1 of 10 STELLENBSOCH UNIVERSITY RETIREMENT FUND GUIDE TO THE WITHDRAWAL PROCESS (excludig retirement on pension) 1. INTRODUCTION This guide has been compiled to assist you as a member of the University

More information

APFA RESPONSE TO THE HMT AND DWP CONSULTATION CREATING A SECONDARY ANNUITY MARKET

APFA RESPONSE TO THE HMT AND DWP CONSULTATION CREATING A SECONDARY ANNUITY MARKET APFA RESPONSE TO THE HMT AND DWP CONSULTATION CREATING A SECONDARY ANNUITY MARKET ABOUT APFA The Association of Professional Financial Advisers (APFA) is the representative body for the financial adviser

More information

Welcome to. OneFamily

Welcome to. OneFamily OneFamily Lifetime Mortgages 1 Welcome to OneFamily Welcome to our OneFamily Lifetime Mortgages. This brochure acts as an easyto-digest introduction to lifetime mortgages and provides you with a summary

More information

Dealing with your mortgage shortfall

Dealing with your mortgage shortfall Dealing with your mortgage shortfall The options available Things to consider Helping you stay on track The Money Advice Service is independent and set up by government to help people make the most of

More information

Strengthening the incentive to save: a consultation on pensions tax relief Response by the Chartered Institute of Taxation

Strengthening the incentive to save: a consultation on pensions tax relief Response by the Chartered Institute of Taxation Strengthening the incentive to save: a consultation on pensions tax relief Response by the Chartered Institute of Taxation 1 Introduction 1.1 The Chartered Institute of Taxation (CIOT) sets out its comments

More information

KEY FEATURES OF LEGAL & GENERAL S PENSION ANNUITY.

KEY FEATURES OF LEGAL & GENERAL S PENSION ANNUITY. PENSION ANNUITIES KEY FEATURES OF LEGAL & GENERAL S PENSION ANNUITY. HELPING YOU MAKE THE RIGHT DECISIONS FOR YOUR FUTURE This is an important document that you should keep in a safe place. 02 KEY FEATURES

More information

PENSIONS REFORM 6 APRIL 2015 YOUR QUESTIONS ANSWERED.

PENSIONS REFORM 6 APRIL 2015 YOUR QUESTIONS ANSWERED. PENSIONS REFORM 6 APRIL 2015 YOUR QUESTIONS ANSWERED. Following Government changes effective on 6 April 2015, there are different ways for anyone over 55 to access their defined contribution pension pots

More information

largemortgageloans.com Bespoke Mortgage Services

largemortgageloans.com Bespoke Mortgage Services largemortgageloans.com Bespoke Mortgage Services WELCOME TO OUR BESPOKE MORTGAGE SERVICES largemortgageloans.com If you are looking for a large mortgage to fund a residential or commercial property purchase

More information

For many Australians, their main form of savings over their lifetime is their home. Directing savings towards a home provides two benefits:-

For many Australians, their main form of savings over their lifetime is their home. Directing savings towards a home provides two benefits:- 1. Executive Summary For many Australians, their main form of savings over their lifetime is their home. Directing savings towards a home provides two benefits:- Ø A place to live, with security of tenure.

More information

Life Insurance made easy

Life Insurance made easy Life Insurance made easy INTRODUCTION Your Health is your Wealth - I genuinely believe that to be true. I work in the A&E Department of a large hospital and every day I see the challenges people face in

More information

INVESTMENT POTENTIAL,

INVESTMENT POTENTIAL, ADD POWER TO YOUR INVESTMENT POTENTIAL, CHOOSE THE M&G ISA 2 CONTENTS What is an ISA? 3 The key benefits of ISA investing 4 Reasons to invest in The M&G ISA 6 What is a Junior ISA? 7 The key benefits of

More information

Make your move for a secure fi nancial future GESB FINANCIAL ADVICE

Make your move for a secure fi nancial future GESB FINANCIAL ADVICE Make your move for a secure fi nancial future GESB FINANCIAL ADVICE ISSUE DATE: 1 July 2012 Who needs fi nancial advice anyway? Financial advice isn t just for those breathing the rarefi ed air. It s for

More information

REACHING HIGHER REFORMING STUDENT LOANS TO BROADEN ACCESS TO POSTGRADUATE STUDY BRIEFING. Rick Muir October 2014 IPPR 2014

REACHING HIGHER REFORMING STUDENT LOANS TO BROADEN ACCESS TO POSTGRADUATE STUDY BRIEFING. Rick Muir October 2014 IPPR 2014 BRIEFING REACHING HIGHER REFORMING STUDENT LOANS TO BROADEN ACCESS TO POSTGRADUATE STUDY Rick Muir October 2014 IPPR 2014 Institute for Public Policy Research ABOUT IPPR IPPR, the Institute for Public

More information

Response to HM Treasury and Department for Business, Innovation & Skills Consultation on social investment tax relief

Response to HM Treasury and Department for Business, Innovation & Skills Consultation on social investment tax relief Response to HM Treasury and Department for Business, Innovation & Skills Consultation on social investment tax relief Charities Aid Foundation September 2013 For further information contact: Rhodri Davies

More information

Our Ref: JM/JB/4.7 June 16 th 2015

Our Ref: JM/JB/4.7 June 16 th 2015 Email: Annuity.Consultation2015@hmtreasury.gsi.gov.uk Annuity Consultation Insurance and UK Regulatory Authorities Team HM Treasury Horse Guards Road London SW1A Our Ref: JM/JB/4.7 June 16 th 2015 Dear

More information

New High Earner Tax in the UK Applies to US Pension Plan Contributions and Accruals

New High Earner Tax in the UK Applies to US Pension Plan Contributions and Accruals MEMORANDUM TO CLIENTS May 13, 2010 RE: New High Earner Tax in the UK Applies to US Pension Plan Contributions and Accruals For a number of years, the UK has had a relatively generous annual contribution

More information

It s flexible. Key features of the Flexible Income Annuity. Flexible Income Annuity

It s flexible. Key features of the Flexible Income Annuity. Flexible Income Annuity It s flexible Key features of the Flexible Income Annuity Flexible Income Annuity This is an important document and you should read it before deciding whether to buy your pension annuity from us Purpose

More information

Strengthening the incentive to save: a consultation on pensions tax relief

Strengthening the incentive to save: a consultation on pensions tax relief Strengthening the incentive to save: a consultation on pensions tax relief Cm 9102 July 2015 Strengthening the incentive to save: a consultation on pensions tax relief Presented to Parliament by the Chancellor

More information

Two-State Options. John Norstad. j-norstad@northwestern.edu http://www.norstad.org. January 12, 1999 Updated: November 3, 2011.

Two-State Options. John Norstad. j-norstad@northwestern.edu http://www.norstad.org. January 12, 1999 Updated: November 3, 2011. Two-State Options John Norstad j-norstad@northwestern.edu http://www.norstad.org January 12, 1999 Updated: November 3, 2011 Abstract How options are priced when the underlying asset has only two possible

More information

Owning shares: a step-by-step guide

Owning shares: a step-by-step guide Owning shares: a step-by-step guide Royal Mail achieved an important milestone when it floated on the London Stock Exchange in 2013. Many of you will have received shares in Royal Mail through the Free

More information

Questions and Answers (Q&A) 1 3 rd December 2015 Tax harmonisation and retirement reforms

Questions and Answers (Q&A) 1 3 rd December 2015 Tax harmonisation and retirement reforms Questions and Answers (Q&A) 1 3 rd December 2015 Tax harmonisation and retirement reforms 1. What are the changes that will come into effect on 1 March 2016? The Taxation Laws Amendment Act, 2013 will

More information

Tax credits: The current picture

Tax credits: The current picture CAB survey findings Advice Week briefing September 2007 Tax credits: The current picture Introduction Tax credits form a vital component of the Government s strategy for tackling child poverty and making

More information

KEY FEATURES OF LEGAL & GENERAL S PENSION ANNUITY.

KEY FEATURES OF LEGAL & GENERAL S PENSION ANNUITY. PENSION ANNUITIES KEY FEATURES OF LEGAL & GENERAL S PENSION ANNUITY. HELPING YOU MAKE THE RIGHT DECISIONS FOR YOUR FUTURE This is an important document that you should keep in a safe place. 02 KEY FEATURES

More information

KEY GUIDE. Drawing profits from a company

KEY GUIDE. Drawing profits from a company KEY GUIDE Drawing profits from a company Constantly changing tax rules When you draw profits from an owner-managed company it is important that you do it in ways that minimise the tax and national insurance

More information

KEY GUIDE. Drawing profits from a company

KEY GUIDE. Drawing profits from a company KEY GUIDE Drawing profits from a company Constantly changing tax rules When you draw profits from an owner-managed company most people are keen to ensure that they do it in a way that minimises the tax

More information

A guide to equity release

A guide to equity release Enjoying financial freedom in retirement: Enjoying financial freedom in retirement: A guide to equity release A guide to equity release Many people see equity release as a way to ensure a comfortable retirement.

More information

1 Don t ignore the problem

1 Don t ignore the problem Sometimes when your circumstances change, for example you work fewer hours, become sick, separate/ divorce, receive a cut in your pay, lose your job or have high bills to pay, life seems impossible. Don

More information

ISAs GUIDE. An introduction to Individual Savings Accounts

ISAs GUIDE. An introduction to Individual Savings Accounts ISAs GUIDE 2015 An introduction to Individual Savings Accounts ISAs GUIDE 2015 Introduction Most people s experience of saving starts in childhood. Your parents encourage you to save up a few pennies,

More information

THE RESPONSIBLE EQUITY RELEASE GUIDE. Everything you need to know about equity release.

THE RESPONSIBLE EQUITY RELEASE GUIDE. Everything you need to know about equity release. THE RESPONSIBLE EQUITY RELEASE GUIDE Everything you need to know about. An informative guide from the specialists Welcome to the Responsible guide to. Equity release has come a long way since regulation

More information

Principles and key features of required reform

Principles and key features of required reform 3 Principles and key features of required reform Given the realities outlined in Chapters 1 and 2 the Pensions Commission believes that minor changes in policy, tinkering with the present system, will

More information

Changing the shape of British retirement. www.homewise.co.uk

Changing the shape of British retirement. www.homewise.co.uk Changing the shape of British retirement Free Phone 0800 043 33 66 About us Welcome to Homewise Like many people, you may have spent years looking forward to a dream retirement lifestyle, perhaps wanting

More information

Group Flexible Retirement Plan Key features

Group Flexible Retirement Plan Key features Group Flexible Retirement Plan Key features This is an important document. Please read it and keep it for future reference. Key features document: Pages 1 21 Terms and conditions for joining: Pages 22

More information

PENSIONS INVESTMENTS LIFE INSURANCE SIMPLE GUIDE TO LIFE INSURANCE FOR PARENTS

PENSIONS INVESTMENTS LIFE INSURANCE SIMPLE GUIDE TO LIFE INSURANCE FOR PARENTS PENSIONS INVESTMENTS LIFE INSURANCE SIMPLE GUIDE TO LIFE INSURANCE FOR PARENTS 1 LIFE INSURANCE FOR PARENTS MADE EASY As parents we know that we need to protect ourselves, our families and homes against

More information

KEY FEATURES OF YOUR BUYOUT BOND ILLUSTRATION KEY FEATURES. and Conditions, available from your financial adviser.

KEY FEATURES OF YOUR BUYOUT BOND ILLUSTRATION KEY FEATURES. and Conditions, available from your financial adviser. 00000 Old Mutual Wealth Life Assurance Limited is a provider of long-term life assurance. It is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential

More information

Taking control of your future

Taking control of your future The Association of Investment Companies Taking control of your future A guide to Self-Invested Personal Pensions September 2014 www.theaic.co.uk The Association of Saving for your retirement is one of

More information

RELEVANT TECHNICAL LIFE GUIDE PLAN TO THE RELEVANT LIFE PLAN RELEVANT LIFE PLAN TECHNICAL GUIDE.

RELEVANT TECHNICAL LIFE GUIDE PLAN TO THE RELEVANT LIFE PLAN RELEVANT LIFE PLAN TECHNICAL GUIDE. RELEVANT TECHNICAL LIFE GUIDE PLAN TO THE RELEVANT LIFE PLAN 1 RELEVANT LIFE PLAN TECHNICAL GUIDE. 2 TECHNICAL GUIDE TO THE RELEVANT LIFE PLAN ABOUT THIS GUIDE This guide has been designed for financial

More information

Mortgages Things You Should Know

Mortgages Things You Should Know Mortgages Things You Should Know Moving and Money So you re starting to talk about moving out of London or perhaps you ve made the decision already and you ve started the search in earnest. One of the

More information

ACCIDENT & HEALTH. Risk BRiefing. Changing Consumer. financial protection

ACCIDENT & HEALTH. Risk BRiefing. Changing Consumer. financial protection ACCIDENT & HEALTH ACe european Risk BRiefing Changing Consumer perceptions of personal financial protection ReseARCh BACkgRound And methodology ACe group commissioned orc international to undertake research

More information

The Retirement Account. Certainty, flexibility and simplicity for life

The Retirement Account. Certainty, flexibility and simplicity for life Certainty, flexibility and simplicity for life Introducing Retirement Advantage Previously known as MGM Advantage and Stonehaven, we are a well-established company that can trace our roots back over 150

More information

WHAT IS EQUITY RELEASE? WHY CONSIDER EQUITY RELEASE?

WHAT IS EQUITY RELEASE? WHY CONSIDER EQUITY RELEASE? WHAT IS EQUITY RELEASE? Equity Release can free some of the capital tied up in your home, while you continue to live there. This money can be in the form of a tax-free lump sum, a regular income or a combination

More information

Pensions - Tax Reliefs

Pensions - Tax Reliefs Pensions - Tax Reliefs Types of pension schemes There are two broad types of pension schemes from which an individual may eventually be in receipt of a pension: Occupational schemes Personal Pension schemes.

More information