View more on these topics

Pension cap tax to hit 59%

The punitive pension lifetime allowance charge looks set to increase to almost 59 per cent for some savers, says Standard Life.

The firm is urging advisers to protect clients’ pension pots by applying for enhanced or primary protection before the April 5, 2009 deadline.

Head of pensions policy John Lawson says HM Revenue & Customs charges 55 per cent when the lifetime allowance is taken as a lump sum. If the excess is taken as a pension, which is compulsory in the public sector, the charge is 25 per cent and then a further 40 per cent – a total of 55 per cent.

But in April 2011, the 40 per cent tax will be replaced by a 45 per cent tax for people earning over £150,000 a year, pushing up the penalty lifetime allowance charge to 58.75 per cent.

Chancellor Alistair Darling announced in the pre-Budget report that the lifetime allowance would be frozen at £1.8m until at least April 2016, which means many more people will be facing the charge.

Lawson says: “Around a quarter of advisers’ clients will have lifetime allowance issues so they really need to be applying for protection immediately.”


Future prospects

It is the year is 2015 and the UK economy is slowly recovering from “the great banking and misregulation crises”.

Concerns at Liontrust duo replacements

Advisers have raised concerns over the experience of Liontrust’s replacements for star fund managers Jeremy Lang and William Pattisson.Gary West and James Inglis-Jones have taken on management of the Liontrust first income and first large-cap funds while Anthony Cross and Julian Fosh now manage the first growth fund.Chelsea Financial Services managing director Darius McDermott is […]

Set your sites high

Even though the internet has now become fully embedded in our everyday lives, it is easy to underestimate what a dramatic effect it has had on the behaviour of businesses and consumers.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm