Savings and pensions should be reviewed thoroughly before the government makes any changes, that’s the view from the Investment Management Association (IMA).

They have called for a holistic approach to be taken before any further changes are made to pensions and savings incentives, in their submission to the Chancellor of the Exchequer for the Budget on 22 June.

According to their report reforms to pensions and long term saving incentives, such as higher rate tax relief or flexible access to pension savings, should be considered only as part of a more comprehensive review to prevent ‘piecemeal tinkering’. 

As part of their recommendations they have said that stamp duty on share transactions should be phased out.

And they believe that the interests of long term savers should be safeguarded when making any changes to Capital Gains Tax, in particular by protecting the annual threshold of £10,100.

They also suggest that any initiatives already under way to build a truly competitive position for the UK as a fund centre should be carried forward by the new coalition.

Richard Saunders, chief executive of the IMA, said: “Savings and pensions are firmly on the Government agenda going forward.  However we badly need a system which provides simplicity and clarity for savers and which targets incentives effectively. 

“The Government should take the opportunity to have a fundamental and holistic look at the pensions and savings regime as a whole, and to ask how it can be simplified while at the same time incentivising people to save for the future. 

“In recent years there have been some very positive changes to help maintain the competitiveness of the UK as a fund location.  However, we need to keep the momentum on the initiatives already under way and keep the UK’s competitive position under constant review.”

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