Personal Pension  

Skandia calls for Budget to double advice tax exemption

Adrian Walker, retirement planning manager at Skandia, has called on the government to shake-up the exemption from income tax that is offered where firms make pensions financial advice available to employees in tomorrow’s (19 March) Budget.

Mr Walker said in 2004 the government introduced an exemption from income tax where pensions financial advice was made available to all employees. The value of that advice was restricted to £150.

Mr Walker said the government should double that amount to £300 and the advice should not have to be restricted to pensions and should encompass all forms of retirement savings.

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To limit the extra costs, and to further increase the chances of employers engaging with the process, Mr Walker said they should be given the option to restrict the provision of advice to new employees, those approaching retirement and those approaching a significant life event.

He also called for the abolition of the lifetime allowance for basic rate tax payers, an increase in small pots commutation limits, a change to the calculation of capped drawdown limits and abolition of the benefit crystallisation event (BCE) test at age 75.