Written evidence submitted by JG Mo (Tax0004)
You only need to look at the two recent tax grabbing proposals re
1)SDLT on a "second property" -without any real definition
of same
2)Reduction of interest relief to 20 % in 2020/21--this will cause serious bankruptcies in years to come.
Both the above proposals are horrendously complicated to understand and create more problems than they solve!
3)In addition constant tinkering with the Pensions system
since "simplification " in 2006 has rendered pension saving a nightmare.
This especially relates to the lifetime allowance(LTA) which was at one stage £1.8 million going down to £1 million or less!--but this figure does not just relate to lifetime pension contributions but to contributions AND GROWTH.
So pensions are now being taxed twice --once when over the LTA at a whopping 55% or at 25% from the fund and further taxed on the marginal tax rate of the recipient which could be at a further 20/40 or 45%! making a total of at least 45% to a maximum of 70%--this is insane and makes saving in a pension not only an admin . burden but also an uneconomic activity.