View more on these topics

Compliance tip of the week

A member of a scheme who flexibly accesses scheme benefits has a duty to tell the scheme administrators of any other pension scheme they have, or join in the future, that they have used flexi-access drawdown. This is because scheme administrators have a duty to inform HM Revenue & Customs if they think someone has exceeded the annual allowance.

Scheme administrators have 31 days to write to members who have flexibly accessed their benefits. 

In the first draft of the Taxation of Pensions Bill, a member had 31 days in which to write to all the other scheme administrators of which he was a member to notify them he had triggered the money purchase annual allowance. But during the Parliamentary process 31 days was deemed unnecessarily harsh so it was extended to 91 days and only applies to money purchase, cash balance or hybrid schemes and not defined benefit. 

If the information is not provided on time, the person that should have provided the information is liable to a penalty of up to £300. Where information is not provided after the initial penalty, a further penalty of up to £60 per day may be applied until the information is provided. If incorrect information has been provided a penalty of up to £3,000 may be due where that incorrect information has been negligently or fraudulently provided.

Aileen Lynch is head of technical at Compliance First

Recommended

George-Osborne-in-Television-Studio-700.jpg
5

Conservatives plotting non-dom clampdown

The Conservatives are evaluating a move to counter a Labour pledge of scrapping non-dom status by ending the ability to inherit the status. The Times reports that Chancellor George Osborne is considering blocking non-domiciled individuals passing down the ability to avoid paying tax on overseas earnings. The report comes just a day after Labour announced […]

HMRC-Building-700x450.jpg
6

Tribunal upholds investor’s claim over £383k tax bill

Investors who have overpaid tax when drawing money from investment bonds could reclaim it through the courts following a ruling in favour of an investor who was landed with a £383,000 tax bill. The Upper Tribunal ruled in favour of Joost Lobler last week after he challenged HM Revenue & Customs over the bill. Lobler […]

Neil Woodford Peach
1

Neil Woodford: Don’t look to Europe to take over from US

Markets often do surprising things in the short term but the recent divergence of the MSCI AC Word index price level and underlying earnings expectations is intriguing. Having recovered rapidly from the financial crisis lows, global earnings have broadly plateaued since 2011. Until recently, that is. The chart (below) shows a sharp deterioration in earnings […]

Home-House-New-Build-700.jpg
3

Can the major political parties deliver on housing?

“Fine words” on housebuilding have yet to win over a sceptical industry ahead of the general election, with calls for more details ahead of the publication of campaign manifestos after Easter. Housing has been identified as one of this year’s most critical topics, with Chancellor George Osborne using a prime slot in the final Budget […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment