Npss structure 'clue' to tax cut

In the Budget on Wednesday, the Chancellor announced reforms to the income tax system including the removal of the 10% rate of tax, a reduction of 2% in the basic rate, while the higher rate tax band of 40% will not be triggered until people earn above £43,000. However, while the reduction came as a surprise to many, Standard Life says the government’s proposals for the savings scheme provided a “clue” to Brown’s decision, as the 20% rate “fits in perfectly with the 3% employer contribution, 4% employee contribution, 1% tax relief structure of personal accounts”. It points out at the pr...