Back office nightmare: Why ISA-style pension taxation is a non-starter

The government's consultation, Strengthening the incentive to save, raises the possibility of substantial change in the taxation of pensions. The starting gun on these changes will be fired by George Osborne in his Budget Statement next March. Although government decision-making on pensions tax relief reform has been delayed another few months, we thought it was worth looking at some of the administrative challenges of moving from the current UK pension tax regime labelled ‘exempt, exempt, taxed' or EET; to TEE, which would tax pension savings on the way in, retain their exempt status...