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For immediate release:
Tuesday 17 December 2002
IMA REACTION TO GOVERNMENT
PENSIONS PROPOSALS
The IMA today
welcomed the Government’s intention to simplify the
complex regimes governing pensions tax, as signalled in the
Treasury and Inland Revenue paper “Simplifying the
Taxation of Pensions”, and called upon it to review the
arrangements for Individual Pension Accounts (IPAs).
The Treasury
paper and the companion Green Paper from DWP emphasise the
twin themes of flexibility and simplicity.
The IMA believes these are precisely the values that make
mutual funds the natural product to form the basis of simple
pensions. In
addition, the IMA
welcomed the proposal for incentives to offer
personal financial advice and information in the workplace.
Richard Saunders, IMA Chief Executive, said:
“While
the Green Paper is generally short on radical new thinking,
we warmly welcome the Treasury’s proposed
overhaul and simplification of pensions taxation.
We will need to look closely at the detail, but at
first sight, removal of the complex limits on annual
contributions to personal pensions should significantly
simplify administration for pension providers and their
clients. The
next step must be for the Government to reform the rules on
Individual Pension Accounts so these can truly become as
simple a product as an ISA.
We look forward to working with the Treasury and
Inland Revenue on this reform.”
For further information, please contact:
Richard Saunders,
Chief Executive, IMA, 020
7831 0898
Clare Arber, Head
of Communications, IMA, 020 7831 0898
Notes for Editors:
- The IMA is the trade body representing the UK asset
management industry, representing some £2 trillion
funds under management and over 99% of the UK investment
funds industry (Unit Trusts and OEICs).
- Individual
Pension Accounts (IPAs) were introduced by the
Government in April 2001 in order to allow for mutual
fund based personal pensions, as an alternative to the
traditional life insurance based products, in view of
the success of such products in the US and in parts of
continental Europe.
In the event, however, the IPA regulations have
failed to allow the development of such products because
their structure introduced complexity which rendered
IPAs uneconomic for providers to offer other than in
special circumstances.
65
Kingsway London WC2B 6TD
Tel:
+44 (0) 20 7831 0898 Fax:+44 (0) 20 7831 9975
www.investmentuk.org
Investment
Management Association is a company limited by guarantee
registered in England and Wales Registered number 4343737.
Registered office as above.
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