Responding to news that the Government has today published a series of tax documents and consultations to modernise the UK tax system, Samantha Brown, regional head of employment, pensions and incentives at Herbert Smith Freehills suggests that the absence of major proposals to reform pensions tax relief will lead to “a huge sigh of relief”.
Commenting on the reforms, which are detailed here, Samantha says:
"UK pension schemes and sponsors will be breathing a huge sigh of relief after the Treasury stopped short of proposing major reform of pensions tax relief, focusing instead on the tax treatment of superfunds and technical changes to improve the current system.
“Calls had been growing, once again, for reform of pensions tax relief, given the sums involved and the perceived unfairness of the current system. The case for reform will no doubt continue to be made but, for the time being, the industry has been spared.
“This is a welcome reprieve as schemes and sponsors grapple with the complexities of GMP equalisation and the new disclosures relating to ESG and climate-related risks and as they prepare for the introduction of the Regulator's new criminal powers and financial penalties and the pensions dashboard."