L&G chief executive calls for flat UK pension tax rate

LONDON, Oct (HKSE: 3366-OL.HK - news) 6 (Reuters) - British insurer Legal & General (LSE: LGEN.L - news) chief executive Nigel Wilson on Tuesday called for a flat UK pension tax rate of 20 percent, in response to a government consultation on pension taxation.

Wilson (Oslo: WILS.OL - news) said in a statement that L&G would like to see 20 percent relief on tax at the point at which savers put money aside for a pension, with taxation at the 20 percent flat rate when they withdraw the pension.

Currently basic rate taxpayers get 20 percent tax relief when they save for a pension, while higher earners benefit from a 40-45 percent tax relief.

Almost 50 billion pounds in tax was lost in paying for pension tax relief in 2013-14, L&G said in a statement, citing figures from Britain's finance ministry, with 30 billion pounds benefiting higher rate tax payers.

Consultation on changes to the system finished at the end of last month.

(Reporting by Carolyn Cohn, editing by Sinead Cruise)