Responding to the consultation “Strengthening the incentive to save: a consultation on pensions tax relief ”, the NI Tax Committee calls for stability and certainty as key principles in the design of any new regime for pensions tax relief.

Key points of the submission include:-

• The current system has seen many changes in recent years with further changes due to come into operation next April as a result of the Summer Budget.
• Box 2.A on page 13 of the consultation document clearly depicts the instability of the current regime.
• It will be crucial to protect those already saving for their retirement via the current regime. These individuals should have the choice to stay in the current regime they have already engaged with or move to any new regime if they so desire.
• Allowing the current regime to remain for those already bought into it could result in an arguably more complex two-tiered system. However it seems unfair to simply remove this choice from those already engaged.

You can read the submission here.