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.

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

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