Article: Tax simplification: The 2006 changes to UK pensions taxation
Abstract: “This paper sets out the key changes, and reports on how the market is responding”
This article discusses the changes made to UK pension’s taxation in 2006 and the implications of these changes. The article clearly identifies two categories in which the issues arising from the changes can be subdivided. Firstly, the Short-Term aspects of the changes, which force the market to react quickly because the implications are clear once the changes are known. Secondly, are the Long-Term aspects of the changes for which the implications may only be speculated.
The layout of the article was clear and easy to follow, beginning with an overview of the current scheme. In this section the writers talked about how “the current approach leads to bewildering complexity for savers” (ref second page of article 1st paragraph) which set the scene for the reader to identify and compare with the new changes which was what the largest section of the article discussed “What’s changing – The new tax regime” (ref page 2). Although these sections I felt were necessary to prep the reader on the topic being discussed, I felt that the wordy examples used, some of the technical language and abbreviations were a bit of a contradiction to how other sections of the article were written such as what for me was the main crux of the essay which did not emerge until section three of the article: “How the Market has reacted”. It wasn’t until reading this section that I felt the article was really getting to the point and the writers set out in clearly constructed bullet points, for the most part, comments on how companies and individuals are reacting to the changes.
The essay was very generic and did not provide any direct referencing to where exactly they gathered their information from with page 6 simply stating “experience has identified the following market reactions” (ref page 2). I found...
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