The government must make reforms to improve transparency and clarity around tax on annuities and trivial commutation of pension pots, the Office for Tax Simplification (OTS) has said.
The OTS published its interim report on reforming pensioner taxation today, in which it made a number of initial suggestions. Launching the review in July 2011, the OTS vowed to simplify the "spaghetti bowl" of pensioner taxation. Today's report said Her Majesty's Revenue and Customs (HRMC) and the Department for Work and Pensions (DWP) should review the way providers explain tax on annuities for policyholders. The two departments should also simplify the paperwork required for trivial commutation of pension pots, and consider uprating the trivial commutation limits of £18,000 and ...
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