Otto Thoresen, Director General of the Association of British Insurers (ABI), has responded to the reduction in pensions tax relief contained within yesterday’s Autumn Statement.
Thoresen said that whilst the organisation recognised the economic pressures the Government faced a second change in pensions tax allowance in three years was frustrating.
He called on the Coalition Government to commit to the new thresholds and resist the urge to tinker with them further.
Thoresen added that pensions tax relief helped people avoid double taxation and encouraged long-term saving and self-reliance.
Director of Life, Protection and Savings Steve Gay said that changes to income drawdown would be welcomed by drawdown customers.
Thoresen also welcomed the Government’s statement that it was keen to bolster the nation’s competitiveness in the field of insurance, and strongly welcomed the reduction in corporation tax.