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New pension rules could hit directors and higher earners

Controlling directors face losing out after the introduction of the latest raft of pension transfer regulations, warns the Income Drawdown Advisory Bureau.

The IFA says anyone who could be disadvantaged by the rule chan ges should consider transferring now.

The changes are part of the personal pension scheme transfer regulations which take effect from April 6. They will have an impact upon controlling directors and older higher earners. The rules will change the calculation of the maximum amount that can be transferred between an occupational and a personal pension scheme.

Controlling directors and higher earners could find themselves having a cap imposed on the maximum level of benefits payable while others may get lower death benefits.

The IDAB says this could cut benefits by as much 30 per cent. The changes could also be bad news for a significant proportion of high earners looking to take drawdown.

Head of marketing David Marlow says: “There are many high-earners in occupational schemes expecting to transfer to a personal pension where there is no cap on benefits but the changes to the underlying calculations in the GN11 funding test means some could lose out by as much as 30 per cent. This is not an across the board situation but in some cases the effect could be dramatic.”


Britannia launches two fixed rate mortgages

Britannia Building Society is launching two new mortgages with rates fixed over two and five years. The two year mortgage is fixed at 4.84 per cent for a maximum 75 per cent LTV and 4.94 per cent for up to 95 per cent LTV. The five year fixed rate is 5.79 per cent up to […]

UK investors show heavy UK bias

UK investors are holding 81 per cent of their investments in UK equities, according to research carried out for Framlington by MORI. MORI questioned 500 investors in November 2000 to reveal UK investors have an average 11 per cent holding in Europe but only 5 per cent in the US. Framlington believes the research shows […]

Britannia pays out £55m for PHL

Britannia, the Uk&#39s secondbiggest building society, has become the first mutual to buy a sub-prime lender with the £55m acquisition of Platform Home Loans. The deal will add £550m to Britannia&#39s existing mortgage book of around £15bn and will allow the society to compete in the prime, adverse-credit and intermediary market. Britannia bought Platform from […]

Find the exit

It is that time of year again. As we approach the end of the tax year, the minds of many advisers will turn to last-minute tax planning. Aside from the inevitable annual rush for Isas, there will be top-ups to pensions, carryback and carry forward and capital gains tax planning, all combining towards a hectic […]

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The politics of healthcare

Healthcare is already one of the key battlefields in May’s general election, with each of the main parties committing to deliver improvements to the NHS and public health.


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