ABI accuses Govt over Budget tax relief measures

ABI director of life and savings Maggie Craig told a House of Lords sub-committee the plan would damage the industry and add an extra layer of complexity to pensions - in direct contradiction of the simplification measures introduced in 2006. From April 2011 the government will cut tax relief on pension contributions for people earning more than £150,000, gradually tapering it from 40% to 20%. Craig told the House of Lords Affairs Finance Bill sub-committee on the Budget the plan would affect only a small number of very high earners but the changes breached the principle that people who...