UK Employers Favour Initial Tax Relief for Pension Contributions

Image

Findings from the 2015/16 Jelf Employee Benefits survey highlight how employers view the recently concluded “Strengthening the incentive to save” consultation launched by George Osborne in his July budget speech.

The survey reveals that a significant majority (68%) of employers favoured retaining at least some level of initial tax relief for pension contributions.

Offering one level of tax relief for all savers was the most popular option (29%), with no changes to the current structure close behind (27%). The Chancellor’s proposal of levelling pension tax relief with the Individual Saving Accounts (ISA) regime polled less than 1 in 4 (24%) of the vote. A further 12% of delegates favoured removing higher rate tax relief for high earners.

Commenting for Jelf Employee Benefits, Steve Herbert, head of benefits strategy said: ‘Employers have had pension duties forced upon them by successive governments, so it is only right that their voice should be heard on this really important issue. And the message is clear – employers want to retain some form of initial tax-relief to encourage pension savings by their employees.

‘It’s also worth pointing out that this is very much a view from the UK employer coalface, with small and large private sector employers represented, as well as many organisations in the third sector and even some large public sector departments. This broad cross-section of organisations provides a very good indicator of the wider employer views on this key topic.’

The survey also revealed that, should a major change to tax reliefs take place, employers want and expect adequate time to adapt current practice and employee communications to the new tax relief environment. More than half of the employers questioned (52%) would ideally like a minimum of two years to undertake such change, with 12% expecting at least three years for this exercise.

Herbert concluded: ‘The employers we questioned have been under increasing and unrealistic time pressures with regard to recent changes to pension legislation, so it’s to be hoped that HM Government listen to this call for adequate planning and implementation time should any major changes arise from this consultation.’

Share this page:

In this section

Societe Generale to Sell Private Banking Activities

Societe Generale has agreed to sell to DBS its private banking activities in Singapore and Hong Kong, representing a total of US$12.6bn of assets under management.

READ MORE →

Nearly Half of Americans Saving Virtually Nothing

About half of Americans are saving no more than 5% of their incomes, according to a new Bankrate.com report. Roughly one in five (18%) are saving nothing at all, plus 28% who are saving something, but not more than 5%.

READ MORE →

GreenPath Announces 2015 Personal Finance Library Programs

GreenPath Debt Solutions, a nationwide non-profit credit counseling and education organization, is partnering with the National Foundation for Credit Counseling (NFCC) to bring free financial education to libraries across the country.

READ MORE →

One Year On, Classic Plus Is Still Putting Money Back in People's Pockets

Over three-quarters (78%) of people believe things generally get better with time – this is certainly true for people who have earned interest with TSB's Classic Plus account.

READ MORE →

Cinedigm Prices Private Offering of $64,000,000 Aggregate Principal Amount of 5.5% Convertible Senior Notes

Cinedigm Corp., a leading independent content distributor in the United States, announced today that it priced its previously announced private offering of $64,000,000 aggregate principal amount of 5.5% convertible senior notes due 2035 to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended.

READ MORE →

Cryptocurrency: How Bitcoins Could Transform Consumer Communication Services

ResearchandMarkets.com has publish a report on Cryptocurrency. Cryptocurrency is a logical way for over-the-top communication services to be bought and sold. Operators will want to familiarize themselves with such currency, and may well find a significant opportunity in enabling transactions involving crypto-currencies.

READ MORE →

News Stand

View more → Sign up to receive new issues →