By Claire West
Responding to the Government’s plans to restrict pensions tax relief, Malcolm Small, Senior Adviser on Pensions Policy at the Institute of Directors, said:
“The IoD welcomes, in overall terms, the Government’s new approach to the restriction of pensions tax relief. We believe the last Government’s approach to have been arcanely complex and likely to disengage higher earners, even those not directly affected by the proposed measures, from pension saving.
“We also believe that the adoption of an approach which restricts the Annual Allowance will be much more comprehensible to consumers, and much easier for the industry to communicate and administrate, keeping costs down. We think that the complexities will lie in how Defined Benefit schemes deal with this approach. However, we do not think the problems are insuperable.”