Tax cuts & annuity nonsense

I was listening to Radio 4 this morning and was pleasantly surprised to hear tax cutting return into the vernacular. With the Tories proposing a policy review filled with tax cuts and abolishing of red tape around the country is welcome news indeed. Lets look at some key points that were made:

+ Scrap inheritance tax at a net cost of £2.6 billion to the Treasury
+ Scrap capital gains tax for assets held more than 10 years
+ Abolish or reduce stamp duty on shares at total cost of abolition of £3 billion
+ Reduce corporation tax to single main rate of 20 per cent at a bill of £4.8 billion
+ Reform pensions system to encourage lifetime savings, home ownership and flexibility in retirement

Well I am not sure who the MP was on the morning programme but I heard him guffing on about the abolition of the "dreaded annuity market". Is this bozo really serious about taking out a whole market - surely not. Does it mean that the approach to pensions reform is to reduce the choice of retirement products ?

posted by Chris Read @ 15:49