Pensions tax could damage UK competitiveness, says Committee

Changes to the taxing of pensions were likely to damage the UK's reputation in its fight for business talent, a UK parliamentary committee has warned.

The House of Lords committee on Economic Affairs said government officials had been over optimistic in their assessment of pension tax changes, reports the FT.

'As was put to us by our private sector witnesses, the people affected are likely to be the opinion formers in the business world and an adverse impact on them, particularly when coupled with the change in the highest rate of income tax, may well produce upward pressure on the cost of employing highly paid talent,' stated the committee's report.

Higher rate tax relief on pensions contributionsd for those with incomes of £150,000 is set to be removed, leaving the basic rate.

Further Reading:

Tax relief on pension contributions: plan of action

Pensions MP claimed £2,000 for accountancy advice