By Daniel Hunter
The chief executive of the world’s largest independent financial advisory firm is warning George Osborne against launching another raid on the pension contributions of higher earners, insisting such a policy would be “anti business.”
The comments from Nigel Green, the CEO of the deVere Group, come as it is reported that the Chancellor met with government ministers yesterday (Monday) to discuss lowering the maximum annual tax-exempt pension contribution, the annual allowance, to £40,000.
“Such a raid wouldn’t only affect those in the super-rich bracket, it would affect owners of enterprises, which are vital for the UK’s economic growth," Mr Green said.
“High rates of personal tax are ‘anti-business’ as they reduce a firm’s capacity to grow, thereby dampening job creation.
“There’s no doubt in my mind that a raid on pensions tax relief for the better off would be damaging for the British economy. It flies in the face of sensible, modern tax policy.
“It is imperative that the Chancellor seeks other ways of boosting the Exchequer’s coffers that don’t hit businesses."
According to a report in the Financial Times, a threshold of £40,000 is expected to raise around £600 million, whilst a further cut in the threshold to £30,000 would raise £1.8 billion.
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