Advisers shun govt plans for ISA-style pensions and flat rate tax relief

Carmen Reichman
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The majority of advisers have joined the chorus against a switch to ISA-style pension taxation, or move to introduce a flat rate of pension tax relief, research suggested.

Only a third advisers supported the move to a flat rate tax incentive and there was almost no support for ISA style pensions, provider AJ Bell found after questioning 170 advisers. The government is currently looking into a change in the tax relief people get on their retirement savings - from upfront to an Isa-style relief on withdrawal - in its ‘Strengthening the incentive to save' consultation. Drawing on recommendations by The Centre for Policy Studies, which called for a full unification of pensions and ISA regimes, the government wants see whether the move would entice people to...

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