View more on these topics

Reality bites on Asp figures

Do those allegedly intelligent people in the Government understand what they are talking about?

As a result of pension simplification (remember, this was the Government in action) we have the alternatively secured pension.

In the discussion phases of pension simplification, this was “wealth cascading down the generations”. Then those clever people at the Revenue noticed what their colleagues were doing and wanted a slice of the cake and we have ended up with an inheritance tax deduction before the net proceeds can cascade down the generations. But our new Chancellor in waiting Ed Balls says Asps are now only available if you are a member of the Plymouth Brethren.

This is because he does not like Asps and the use of the Asp is deemed to be IHT avoidance. But Plymouth Brethren are so influential that he believes they alone should be allowed to use the Asp that his Government created.

I was never very good at maths but perhaps someone should ask the Treasury whether they would like 100 per cent of nothing, which is what they will get on death of the annuitant if everyone is forced back down the annuity route or 40 per cent of something from an Asp.

Since this is exactly what they would have got if the money had remained within the estate (and more than if it had gone into the pension followed by an annuity), can someone tell me how this is IHT avoidance.

Alastair Lyon
Woking, Surrey


SimplyBiz takes steps to aid retiring members

SimplyBiz is offering a retirement planning scheme for members which it says will work along similar lines to an annuity. The exit strategy programme, called Stepping Out, will marry retiring members with another member firm that will take over their book of business and its renewals. SimplyBiz will pay members 70 per cent of the […]

DWP rapped over disclosure delays

The Department for Work and Pensions has been criticised for delaying reforms to the disclosure requirements for defined-benefit schemes. The regulations, designed to bring disclosure requirements in line with defined-contribution schemes, would have forced DB schemes to produce an annual statement of benefits to members from next April. But pension reform minister James Purnell said […]

Qatar cover image - thumbnail

White paper — Qatar International Insights

Jelf Employee Benefits highlights new legislation, key requirements and policy considerations when structuring international private medical insurance (IPMI) for expatriate employees in Qatar. This edition will be of particular interest to global human resource directors, compensation and benefits specialists and mobility managers who have employee populations in Qatar.


News and expert analysis straight to your inbox

Sign up


    Leave a comment