Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise

Latest NewsPay & benefits

Mercer calls on Government to clear up tax position on lump sums for pension benefit rights

by Mike Berry 23 Nov 2006
by Mike Berry 23 Nov 2006

The government must clarify the tax treatment of lump sums paid to pension scheme members in return for giving up their benefit rights, according to consultancy Mercer. 


In an open letter to the chancellor Gordon Brown and pensions secretary John Hutton, the firm said tax inspectors are allowing these lump sums to be made tax free for individuals who are no longer employed or building up future benefits.


The implications of this practiv are that the Treasury may lose up to £2bn in pension tax receipts, and there is a positive incentive for schemes to stop pension accrual, so that their employees are eligible for tax-free payments. 


Tim Keogh, worldwide partner at Mercer, said: “[Mercer] is staggered that the Revenue is authorising tax-free payments and therefore creating an incentive for pension schemes to close. Is this really what the government wants?”


Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

The policy will further hinder those employers that want to continue operating their defined benefit schemes or, if it is amended, much time and money will have been wasted by employers exploring the current opportunities, Mercer warned.


Keogh said: “This issue is so fundamental that the government should spell out its position – either it should make clear that these tax advantages are intended and acceptable, or it should set out a policy making the payments tax-neutral.”

Mike Berry

previous post
Council workers converge on Parliament to lobby for pension rights
next post
Months of sleepless nights threaten health and safety of UK workplaces as England’s cricketers begin defence of Ashes in Australia

You may also like

Nestlé sacks CEO over ‘undisclosed’ romantic affair

2 Sep 2025

Personnel Today Awards 2025 shortlist: Health and wellbeing

2 Sep 2025

Deloitte to hire 1,500 graduates and apprentices

2 Sep 2025

Airbus strikes postponed after new pay offer

1 Sep 2025

Free childcare expansion beset with recruitment challenges

1 Sep 2025

Business confidence grows to post-Budget peak

1 Sep 2025

Dental nurse pushed out by rude behaviour awarded...

1 Sep 2025

Warship deal with Norway secures 4,000 jobs

1 Sep 2025

Decision to sack man for Michael Jackson noises...

29 Aug 2025

P&O Ferries boss who steered 800 sackings steps...

29 Aug 2025

  • Work smart – stay well: Avoid unnecessary pain with centred ergonomics SPONSORED | If you often notice...Read more
  • Elevate your L&D strategy at the World of Learning 2025 SPONSORED | This October...Read more
  • How to employ a global workforce from the UK (webinar) WEBINAR | With an unpredictable...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Recruitment & retention
    • Wellbeing
    • Occupational Health
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise