David Jetuah, Accountancy Age, Wednesday 28 July 2010 at 09:49:00

Moves to work out pensions tax relief welcomed by advisers, but there is still a long way to go

Accountants and employee benefits experts have welcomed the governement's efforts to reach a compromise on taxing high earners' pensions contributions.

HM Revenue & Customs and the Treasury are jointly handling a consultation on pension tax reliefs, after plans floated by the last government were roundly criticised for being highly complicated and expensive.

Vincent Oratore, president of the CIoT said: "The review of the proposed changes to pensions tax relief is especially welcome.

We all understand that pensions tax relief is going to be curtailed, but that there has to be a simpler way than the complex and costly system previously legislated for."

Joanne Segars, chief executive of the National Association of Pension Funds said:

"Many details still need to be resolved, but we are pleased the government is taking our proposals on board."

Further reading:

Cameron pledges tax reform to woo Lib Dems