Report: Pension Taxation Reform

This is a summary of Aon's response to the HMRC consultation "Strengthening the incentive to save: a consultation on pensions tax relief".

Aon has taken as its starting point - based on repeated comments from Treasury - that the objective of this consultation is to review the effectiveness of the current structure of incentives available to encourage pensions saving. However, the Treasury consultation also stresses that the cost of current reliefs on pension saving is significant. There are relatively few comparable opportunities available to the government to improve public finances to the extent of pension taxation, and Aon accepts that it would be reasonable for Treasury to question the overall quantum of relief offered.

Aon has set out its proposals to address both the incentive and overall quantum of support for pensions in its consultation response.