IoD response to Government proposals on restriction of pensions tax relief

Dated: 26 August 2010

Responding to the Government’s plans to restrict pensions tax relief (note – the Government’s consultation closes on 27 August), 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.”

To see the IoD’s full response to the Treasury consultation paper Restriction of pensions tax relief please go to the contact point below.

ENDS

Contact Points

Edwin Morgan
Media Relations Manager
Institute of Directors, 116 Pall Mall, London SW1Y 5ED
Tel: +44 (0)20 7451 3392
Mob: +44 (0)7814 386 243
Email: edwin.morgan@iod.com
Website: www.iod.com/policy

Notes to editors

  • The Institute of Directors (IoD) was founded in 1903 and obtained a Royal Charter in 1906. The IoD is a non-party political organisation with approximately 38,000 members in the United Kingdom and overseas. Membership includes directors from right across the business spectrum – from media to manufacturing, e-business to the public and voluntary sectors. Members include CEOs of large corporations as well as entrepreneurial directors of start-up companies.
  • The IoD provides an effective voice to represent the interests of its members to key opinion-formers at the highest levels. These include Government ministers and their shadows, parliamentary committee members, senior civil servants and think-tanks. IoD policies and views are actively promoted to the national, regional and trade media. Follow us on Twitter to get the IoD’s reaction on business and public policy issues.
  • The IoD offers a wide range of business services which include business centre facilities, with ten UK centres (three in London, one each in Reading, Birmingham, Cardiff, Manchester, Nottingham, Norwich, Edinburgh, Glasgow and Belfast) and one in Paris, conferences, networking events, virtual offices, issues-led guides and literature, as well as free access to business information and advisory services. The IoD places great emphasis on director development and has established a certified qualification for directors – Chartered Director – as well as running specific board and director-level training and individual career mentoring programmes.
  • For further information, visit our website: www.iod.com