Partnership: Tax relief paper about 'cost cutting' not saving incentives

Carmen Reichman
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The government's tax relief consultation is not aimed at incentivising consumer saving, despite claiming that is its main aim, Partnership's Steve Groves has said in a damning presentation on the issue.

Key points in the paper point to its real aim which is to cut the cost of tax relief, Groves told advisers at the IFP conference in Newport on 6 October.  He said the clue was in the paper stating "the system needs to be sustainable". He said this point implied the government did not think the current system could work in the long term. However, that may be misguided, he suggested: "If you did absolutely nothing the cost of tax relief on pensions is currently at its highest and will later decline (once the baby boomer generation has retired)." The government proposed to change p...

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