Simplification paper has loopholes for 'fat-cats'

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Proposals for the Inland Revenue's simplification paper has open up several loopholes for 'fat-cats', industry experts warn.

The document, which was published right after Chancellor Gordon Brown's pre-budget report on Wednesday, reveals several different ways in which a 'well-off' person can get away with a large pension pot without paying any additional tax charges. One aspect of the paper, which could be used to get around Revenue contribution restrictions, is the proposed £200,000 annual limit. While the annual limit will work in the same way as the £1.4m lifetime limit, the annual ceiling is NOT applicable during the final year of contributions. The document reads: "exempting contributions and benefit g...

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