Background
The December 2002 Treasury discussion document suggested a number of changes,
to take place from an
appointed day (“A Day”) which was initially to be in 2004. The majority
of the proposed changes were welcomed, at least in broad terms, by
professional tax and pensions advisers.
On 10th December 2003, the government published a fresh document
(“simplifying the taxation of pensions: the government’s proposals)
which took account of comments and suggestions made in response to the
first consultation period. One significant amendment in the new document
was to postpone the appointed day, to April 2005.
Finally, on 17th March 2004 the Chancellor announced a firm commitment
to implement the 2002 and 2003 proposals with, again, relatively minor
changes. Once again the implementation date has been deferred. Now, the
latest set of proposals will be the subject of legislation which will
come into effect on 6th April 2006. Until that date, we have to put up
with the existing eight separate tax regimes, and all the complexity that
entails. |
