SSAS provider Rowanmoor has attacked the Budget as a “ridiculous, illogical piece of legislation” but denies that its family trust proposition will be adversely affected.
The firm launched the Sipp/ SSAS hybrid product last year. It enables friends and family to pool their funds in a scheme and keep benefits within the scheme once a member dies.
Director David Seaton concedes that the Budget prop-osals have killed off the product as an estate planning tool but says it was never promoted as such.
The Budget consultation paper on inheriting tax-relieved pension savings contains proposals to impose similar charges that apply to Asps on scheme pension arrangements.
It says “inappropriate” uses of tax-relieved pension savings includes where arrangements have been put in place that seek to increase the rights of ano-ther person as a consequence of the death of a member and when the other person that benefits from the increase in rights was connected with the deceased.
Rowanmoor director David Seaton says: “This is an illo-gical, ridiculous piece of legislation but I am not overly concerned as we have never recommended our product for estate planning.”