Pre-budget report 2006: Discussions over non-cash benefits for pensioners welcomed

Published at 11:27 AM on 06 December 2006

PricewaterhouseCoopers LLP has welcomed the announcement in the Pre-budget report that HM Revenue & Customs (HMRC) will discuss with interested parties concerns raised over the tax charge and the administrative burden involved in the non-cash benefits that former employers provide to pensioners. Clive Mackintosh, tax partner and head of private clients, PricewaterhouseCoopers LLP, said: “In the 2006 Budget the Chancellor announced moves to tax all non cash benefits provided to pensioners, which had a major impact for most retired agricultural workers. These are some of the lowest paid people in the UK economy but in retirement they are often allowed to remain in the homes provided by their employers. “The change in the Budget meant that what had been a well earned perk in retirement could have an enormous tax implication as this benefit was now taxable - which could mean a tax charge on the benefit which of up  to 10% of the value of the property per annum.” The Government has said it will review how the current £100 lower limit applies to low value benefits across different categories of expenditure for less well-off pensioners and how the tax treatment for non-cash benefits provided to pensioners compares to the treatment of employee benefits.ENDS

Notes to Editors:

1.PricewaterhouseCoopers experts are available on Pre-Budget Report day for comment and analysis. Please call the Pre-Budget hotline on 020 7213 4311 or visit www.ukmediacentre.pwc.com 


For more information contact:

Frances Brown
Media Relations Executive, Tax, PricewaterhouseCoopers LLP 
Tel:020 7213 7258 
Mobile:07841 494 508 
 

Clive Mackintosh
Partner, PricewaterhouseCoopers LLP 
Tel:020 7804 5614 

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