Government pension tax reforms are 'seriously flawed'

Date: 8th March 2010

The government has been slammed by one industry body for the "complex" nature of its pension tax relief reforms for those on high incomes.

According to the Association of Consulting Actuaries (ACA), the reforms are "ill thought out, complex, costly to implement and will damage the pension prospects for those on middle and low incomes".

Keith Barton, chairman of the organisation, claimed the reforms are "dreadfully conceived" and will prove an "inefficient" way of raising additional revenues.

"We understand the desire to raise additional revenues in the current climate and that those on higher incomes must accept they will bear a higher proportion of the tax take," he said.

"However, the policy proposed, centred round an income threshold, is just about the most complex and inefficient way possible - it seems to have been dreamt up with scant regard to how arbitrary it will be as comparing one individual to another."