Commenting on the reduction in pensions tax relief, Otto Thoresen, Director General of the Association of British Insurers, said:
“Changing pensions tax allowances for the second time in three years is frustrating although we understand the economic pressures facing the Government.
“It is now vital that ministers commit to these thresholds and avoid further tinkering if long-term savers are to be encouraged to put aside income for their retirement.
“Pension tax relief helps avoid double taxation and encourages people to be self-reliant in retirement so it is in everyone’s interests that savers feel confident in the stability of the system.”
– On changes to income drawdown, Steve Gay, ABI’s Director of Life, Protection and Savings, said:
“Drawdown customers will welcome the boost to the income they can take from their pensions. The ABI will work closely with its members and Government to ensure this is implemented as efficiently as possible and we look forward to seeing further details”.
– On the competiveness of the UK as an insurance base, Otto Thoresen commented:
“We welcome the Government’s statement that it is keen to encourage and further build the UK’s position as a competitive base for international insurers and we are pleased the Government recognises the contribution the sector makes in terms of exports and long term investment. The ABI stands ready to work with the Government in any way it can to achieve this goal.”
– On the reduction in the rate of corporation tax, Otto Thoresen, said:
“We strongly welcome the further reduction in the rate of Corporation Tax. It will undoubtedly improve the competitiveness of the UK, and increase returns for investors in British companies.”
