Government pensions tax proposals could cause serious problems, warns STEP
Emily Deane said: "Proposed pension changes should not proceed without a thorough assessment of how they will work in practice and their wider impact on the tax system."
The Society of Trust and Estate Practitioners (STEP) has called on the Government to address problems linked to proposed pensions tax changes before making further changes in the Budget.
STEP wrote to the Treasury about practical issues with the proposals.
It said families could be required to pay tax before probate was granted but would be unable to access the funds needed until probate had been obtained.
Emily Deane, technical counsel and head of government affairs at STEP, said: “Families and businesses do not need more tinkering and added complexity from this Budget.
“They need certainty – policies that are properly thought through, joined up and actually workable.
“The government has already made significant changes to inheritance tax, pensions, reliefs and international tax rules, but these have been made in silos without properly considering how they work together. This is causing disruption.”
Deane added: “We are urging the government to fix the problems created by recent changes.
“In a letter we have just sent to the Financial Secretary to the Treasury, we’ve highlighted that the proposed pension changes contain serious practical flaws.
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