Pensions - Articles - PwC comments on restrictions to asset-backed pension

 Alex Henderson, partner at PwC, commented:

 "The Chancellor's plans to restrict the deductions available for asset-backed pension contributions are not unexpected. The use of assets as part of pension scheme deficit funding has become increasingly popular and we were expecting him to introduce a specific tax regime for this area. The final proposals are not far away from the consultation document issued earlier this year so employers will have known to expect something."

 "They may be surprised at the scope of the measures, which will apply from today. But overall the measures look to restrict relief rather than abolish it. We expect this area to be of continuing interest for many employers facing deficits in their schemes and employers will be pleased to have the additional certainty of specially designed legislation. The Chancellor is looking to raise significant sums from the change but it is not clear that there is that much revenue for him to go for, as most employers will have been looking simply to achieve what he is now proposing to allow."