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Protect clients’ pensions from new tax

IFAs must contact clients over transitional protection for their pension funds or risk them being hit with a big tax bill, warns Intelligent Pensions.

The firm is writing to all of its clients to explain how A-Day will trigger an additional tax charge under the new pension simplification rules unless steps are taken before April.

Consultancy Tillinghast predicts that 250,000 exec- utives are likely to be hit by the 55 per cent recovery charge after A-Day on pension assets that exceed the lifetime allowance.

Transitional protection allows pension rights built up before April 6 to come into payment from April without being affected by this tax charge.

Intelligent Pensions tech- nical manager David Tren- ner points out that people with pension funds above or close to the lifetime allowance enhanced protection can protect both the existing fund and any fut- ure growth from the recovery charge.

However, as a result, these investors would not be able to make further contributions into the pension after A-Day.

A decision has to be made by A-Day although registration with HM Revenue & Customs is not necessary until 2009.

Trenner says: “This is going to be a huge amount of work for us, although I estimate it will only affect only 100 of our 1,000 clients with Sipps. The message is that clients have to be aware of this now.”


Product matters

Richard Skelt and his team at Fidelity are being given scope to use the full range of investment possibilities under the UK equity income and UK all companies sector rules when managing the new multi-manager equity income and multi-manager special situations funds. This means they will be able to invest up to 20 per cent […]

Terminal diagnosis

It is all over bar the shouting for private-sector final-salary schemes

Christows to run adviser investment seminars

Christows the discretionary portfolio manager is setting up series of adviser seminars on investment client strategy.The courses, to take place in January and February, will include sessions on the investment outlook for 2006, predictions for the Aim market, Christows multi-manager strategy, the seven sins of fund management and the retail sector and UK consumers. Speakers […]

Strong showing is foiled by growing pension liabilities

The pension deficit faced by Britain’s biggest 350 listed companies rose by 24 per cent to 93bn in 2005 despite strong returns from equity markets. Mercer Human Resource Consulting research found that FTSE 350 pension asset values rose by around 60bn to 422bn but liabilities grew at a similar rate. The average UK pension fund […]

Iain Chadwick

The Budget 2015: a brief overview

Following George Osborne’s delivery of his sixth Budget as chancellor and the last of this current parliament, we have provided a brief overview of the initiatives put forward in his statement, focusing on the topics that have an impact upon the pensions landscape, savings, personal taxation and businesses.


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