CIOT welcomes tax relief proposals

The government's proposed changes to pension tax relief have been welcomed by the Chartered Institute of Taxation (CIOT).

However, the group noted that certain issues still need to be resolved in order to make the changes "workable".

These include developing a "fair and practical method of valuing accruals from Defined Benefit pension schemes" and a separate review of specific issues relating to overseas schemes.

In addition, the group called for hybrid schemes to be considered as these are not addressed in the discussion paper.

John Whiting, tax policy director at CIOT, commented: "We all understand that pension tax relief is to be curtailed for high earners, but there must be a better way than the complicated system pushed through before the election.

"The government's route of a simple and pragmatic cut in the annual contribution limit is in line with our own proposals."

He added that the remaining problems are "soluble".