Friends Life has argued that simplifying the movement of assets into a SIPP is crucial for the success of corporate platforms. It has urged the government to allow transfer of certain types of ‘in-specie’ pension contributions into a SIPP.
Present HMRC rules discourage pension savings since it allows only a few in-specie contributions into a SIPP, said Dan Hawkins, corporate platform proposition manager at Friends Life.
Friends Life said it believes relaxation of present HMRC rules will encourage employees to transfer benefits such as share incentive plans into tax wrappers.
The current rules do not encourage savers, since contributions to a registered pension scheme must be a monetary amount.
“Removing some of the strict criteria around in-specie contributions outside of maturing sharesave arrangements into a pension would be a simple, yet profoundly important, step towards realising the government’s ambition to ignite long-term savings”, said Mr. Hawkins.
Advocating for further simplification of transfer rules, he added: “The industry accepted solution of creating an irrevocable debt then receiving settlement of that debt in shares or units is cumbersome, costly and difficult to administer for all concerned”.