The Government has confirmed that it will not conduct a review into the impact of pension tax relief within the next 12 months, even though MPs have encouraged this, due to the associated £38 billion cost in tax year 2018-19.
The Public Accounts Committee released a report on the management of tax reliefs, which included a recommendation for HMRC to evaluate the effect of pension tax reliefs within a 12-month deadline. The Government dismissed this recommendation, despite concerns around the monumental cost that was incurred in 2018-19. The Treasury confirmed that it has already published a number of consultations on the topic of pensions tax relief over the course of the past few years, including an ongoing call for evidence on how it should be administered, which was launched in July 2020. It stated that these consultations were instrumental in collating views, evidence, and feedback on the effects of the relief and the impact that making any changes would have. There was confirmation, however, that it would continue to explore the tax system and identify other areas that need to be scrutinised.
The Financial Adviser reported that the Treasury had stated:
“Responses to the 2015 wide-ranging consultation on pensions tax relief indicated there was no clear consensus for reform at that time, and so at Budget 2016 the then government announced it would not make fundamental reform to pensions tax reliefs at that stage.”
Chancellor Rishi Sunak’s predecessor, Sajid Javid, is reported to have been contemplating cutting the relief for higher earners to 20%, so amendments to pensions tax relief have been on the horizon for some time.
Various debates have also been ignited that introduce a 30% flat rate of tax relief, and proposals to completely rehaul the system and provide relief at the point of withdrawal, as opposed to at the point of saving.
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Recognised overseas pension schemes notification list 5 October 2020
The list is of schemes that have told HMRC they meet the conditions to be a ROPS and have asked to be included on the list.
There have been 47 scheme names added to the list, and two scheme names removed. No amendments have been cited in this update.
An updated list of ROPS notifications is published on the first and 15th day of each month. If this date falls on a weekend or UK public holiday the list will be published on the next working day. Sometimes the list is updated at short notice to temporarily remove schemes while reviews are carried out, for example, where fraudulent activity is suspected.
The requirements to be a ROPS changed from 6 April 2017 - find out about the changes for ROPS requirements.
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HMRC webinars – Off-Payroll working and Avoiding Saver Scams 5 October 2020
HMRC has advised that they have scheduled further Talking Points webinars.
In the coming weeks you can book onto webinars on the subject of protecting against saver scams and a reawakening on the subject of Off-payroll working reforms which are to be implemented from April 2021.
There are a limited number of spaces therefore to avoid disappointment secure your place now.
How you can help savers avoid scams - Monday 12 October 11.15am to 12.15pm
The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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