Pensions industry welcomes more flexible tax regime

The
pensions industry has given a ‘thumbs-up’ to the Inland Revenue’s proposed
changes to the taxation of company pension schemes.

In
an online survey of more than 100 pension professionals by HR consultancy
Hewitt Bacon & Woodrow, 78 per cent were in favour of the proposals, which
will increase the flexibility and choice of available schemes.

A
similar percentage said they felt the changes would lead to a genuine long term
simplification.

However,
most people in the industry recognise that the changes will make life more
complex in the run up to April 2005 deadline.

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Andy
Cox, pension consultant at the firm, said: "We may face a painful
transition to implement the necessary changes – but it will be worth it in the
long term."

By Mike Berry