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Catch up with the latest press releases from LV=

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LV= responds to treasury consultation on pensions tax relief - calling for stability, simplicity and fairness

Press release: 01/09/2010

Following LV='s official submission to the Treasury's consultation on changes to pension tax relief, Ray Chinn, LV='s Head of Pensions, comments: "Overall, what we want to see is a stable, simple and fair regime that will allow people and companies to plan for the future with confidence. We pride ourselves on being an expert provider of SIPPs and enhanced, with-profits and third way annuities, and we feel our response to this consultation acts in the interest of our existing members and customers."

In terms of specific comments on some of the key proposals, the LV= response focuses on the need to balance tax relief with a desire to retain the attractiveness of pension saving to ensure people are encouraged to take greater ownership of their retirement income provision. On the subject of the Annual Allowance, Mr. Chinn commented: "We believe a lower Annual Allowance would act as an effective cap on tax relief, meaning the lifetime limit could be removed to simplify the rules for savers. However, we suggest this Annual Allowance should rise with age, enabling older workers to make up for missed contributions, and taking account of defined benefit scheme members whose salaries increase significantly towards the end of their careers."

"The other key proposal we have commented on is the proposal to cap tax relief at 40% as a potential trade off with the level of Annual Allowance. Although we understand the wider rationale here, and support as high an Annual Allowance as possible to increase pensions saving, we feel we can only support limiting the tax relief if there was a commitment from Government that relief would not be further reduced in the future."


LV=

LV= and LV= Liverpool Victoria are trademarks of Liverpool Victoria Friendly Society Limited (LVFS) and LV= and LV= Liverpool Victoria are trading styles of the LVFS group of companies.

LV= employs over 4,000 people and serves more than 3.8m members and customers. LV= is the UK's largest friendly society and a leading mutual financial services provider.

LVFS is authorised and regulated by the Financial Services Authority and entered on the Financial Services Authority Register No. 110035. LVFS is a member of the ABI, AFM, and ILAG. Registered address: County Gates, Bournemouth BH1 2NF. www.LV.com