OTS report calling for pension taxation review welcomed

The report covered a range of contentious issues, including the complexities of pension tax limits, notably the tapered annual allowance and the combined effects of the annual and lifetime limits. It said the allowances should be "reviewed" taking account of the "distortions they sometimes produce". Elsewhere it looked at the way in which lower paid workers can miss out on pensions tax relief altogether depending on whether their employer has chosen a scheme that uses ‘relief at source' or the ‘net pay arrangement'. The report said the government should consider removing or reducing the ...