Pensions Tax Simplification Newsletter No 26

Budget 2007

The Budget on 21 March 2007, contained several announcements on changes to the pensions? tax regime to ensure that the pensions tax rules continue to meet their original intention and that pensions tax relief is used for saving for a retirement income:

  • changes to the rules on Alternatively Secured Pensions (ASP) to ensure that pension saving is used to provide an income in retirement and is not used to create tax relieved inheritance;
  • a measure to remove an individual's entitlement to tax relief on any pension contributions they pay that are used for personal term assurance policies; and
  • a package of technical improvements to ease the administrative rules including changes to the taxation of non-cash benefits provided by employers to their retired former employees

To read more on this update at HM Revenue and Customs 


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