Pensions tax simplification

Has the pensions tax regime introduced on 6 April 2006 achieved the simplification it intended?

As long ago as 1998 I was part of the initial bandwagon crying out for the vastly overcomplicated pensions tax legislation to be simplified. Some readers may recall my article (‘For the sake of simplicity’ Tax Journal dated 6 July 1998) urging that something should be done to simplify the then current pensions tax regime.

It took six more years for the government to bite the bullet and two consultation documents before FA 2004 ss 149–284 and Schs 28–36 swept away the old pensions tax regime with a commencement date of 6 April 2006. At a stroke the legislation did away with what was felt to be eight different pensions tax regimes with very complicated rules for...