Pension News
We will let you know the latest news about Pensions and any other news that we feel may be of use.
Changes from 6th April 2012
From today, 6th April 2012, the rules surrounding the treatment of Protected Rights pension funds are abolished and these funds effectively become "non protected rights". As there is no longer any need to separately identify protected rights, benefits can be paid in the same way as other normal pension funds. This also brings a welcome change for SSAS clients, who previously were unable to hold protected rights funds within their pension scheme.
***END OF TAX YEAR***
Our offices in Carlisle and Darlington will remain open until 5 pm today to accept last minute applications and contributions for the 2011/12 tax year. Anyone considering making payment directly to us... (click title above to read full article)
Budget - initial reaction
At first glance it looks as though the Chancellor has left pension tax reliefs unchanged in today's budget, which is a welcome outcome. Our offices in Carlisle and Darlington will be open until 5 pm on Thursday 5th April 2012 in order to accept last minute applications and pension contributions for the 2011/12 tax year.
Pre-budget planning
Speculation is mounting that the coming budget may include measures to restrict pensions tax relief for higher earners - specifically those paying income tax at the rate of 40% or 50%. The budget is set for Wednesday 21st March 2012, and we can't help but notice that this is getting more press comment than usual this year. It's impossible to know whether changes are likely to happen, but suffice to say that if you're planning on making pension contributions by the end of this tax year, 5th April 2012, and you're concerned about any possible budget changes then you should consider making those payments before budget day. You should always seek advice on this subject prior to taking action. Note that InvestAcc Pension Administration Limited do not provide financial advice.
Spousal Bypass Trust now available
We're now making available draft discretionary trusts for advisers. These are sometimes known as Spousal Bypass trusts, or occasionally as Pilot Trusts, and if used properly can save eventual inheritance taxes by avoiding payment of a lump sum death benefit direct to a surviving spouse, but still allowing the spouse to benefit at the trustees discretion. The draft trusts aren't available for download from our website - contact us for information on 01228 538 988.
Further reduction in Income Drawdown limits
The gilt yield (used to calculate the maximum income for Capped Drawdown) for September 2011 is at an all time low, meaning that maximum income for new Capped Drawdown cases in October will be squeezed even further. The effect of the new income limits introduced in April 2011, together with historically low gilt yields means that maximum income is around 30% lower now, compared to March 2011 (for a male aged 65).
Fixed Protection
Following confirmation in the Finance Act the Lifetime Allowance is due to reduce from £1.8m to £1.5m for any benefit crystallisations after 6th April 2012. It is however possible to apply for protection to maintain the lifetime allowance at £1.8m and HMRC have now made the application forms available at http://www.hmrc.gov.uk/pensionschemes/apss227.pdf
Beware new tax penalties
A subtle change in the self assessment tax penalty regime may have expensive consequences for Small Self Administered Pension Schemes.
« Previous | page of 3 | Next »
The Minerva Newsletter
FTSE 100 Index
InvestAcc Pension Administration Limited is registered in England and Wales. Company number 7118349. Authorised and regulated by the Financial Services Authority.
Note InvestAcc Pension Administration Limited does not provide financial advice.
