ACCA calls on Chancellor for greater pension relief
More tax relief to encourage people to make pensions provisions should be introduced in November’s Budget, claims ACCA.
The certifieds’ association has also called on the Chancellor to introduce tax breaks for the costs run up by individual taxpayers complying with new self-assessment procedures.
ACCA’s tax committee chairman, Mavis Sargent, said: ‘We need a thorough review of tax legislation on pensions with a view to removing unnecessarily detailed requirements so that it will be easier for people to make provisions for retirement.’
Currently, people looking to invest for their future can gain relief on personal pension contributions, but only on a scale between 17.5% and 40% of their gross income.
Sargent called for greater relief. ‘People who are over the age of 50 should be able to obtain relief on whatever portion of their income they contribute to a pension,’ Sargent said.
‘The time limit for making a claim for carryback relief should also be extended to at least two years.’
ACCA’s self-assessment tax breaks included relief on the additional costs of preparing returns, inquiries and appeals, and transfer pricing enquiries.
The association’s budget submission also calls for the Chancellor Kenneth Clarke to simplify the tax system, particularly capital gains tax retirement relief, and the introduction of inheritance tax relief if a principal private residence forms over half the deceased’s estate.