AS2011: Osborne targets pension tax avoidance

THE CHANCELLOR has targeted tax avoidance based on pensions in an effort to raise £500m a year.

Asset backed pension funding arrangements that banks are using to avoid tax.

This was announced at the same time as George Osborne said the Bank Levy was to be increased to 0.088% from 1 January 2012 – an increase from 0.075% and more than the predicted rise of 0.003%.

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