Pension tax regime ‘must be simplified’, ACA survey finds

Some 75% of employers say they want the pension tax regime simplified, according to a new study from the Association of Consulting Actuaries (ACA).

The survey, which received responses from 308 employers of varying sizes, found that 67% saidlower earners should be targeted for additional help even if that means reducing relief for higher earners.

In addition, some 69% said they want the Tapered Annual Allowance to scrapped even if it leads to a reduction in the general annual allowance.

Jenny Condron, the ACA chair said: “The findings in this our third report on our 2019 Pension trends survey have underscored employers frustration with the damaging impact of the ‘tightening’ of pension tax reliefs in recent years through lower Annual and Lifetime Allowances, and the complexity that this has introduced.

“There is widespread demand for reforms to simplify a tax regime that is now well past its sell-by date.It is clear that any reforms being considered by the Treasury must not be short-term tweaks for public sector employees only—reform must be even handed and extend to resolving problems that impact on all wealth-generating sectors of our economy.”