Her Majesty’s Revenue and Customs has closed a loophole that could have allowed small self-administered scheme members to build a pension pot over the lifetime allowance while avoiding tax charges.The Revenue’s warning that attempts to dodge the lifetime allowance constitute tax avoidance comes after it discovered a number of company directors and high-earners trying to exploit grey areas in the pension simplification rules. SSASs are typically regarded as money-purchase schemes but the Revenue says some individuals are setting up schemes containing big pension benefit promises without the pension pot to support the promise. Investors would then claim enhanced protection at A-Day based on this promise and then pay in contributions to fund it after A-Day. One of the conditions of enhanced protection for defined-contribution schemes claiming enhanced protection is that no further contributions are made after A-Day. However, individuals are looking to get round this by treating the SSAS as a defined-benefit scheme which has different rules for enhanced protection. The Revenue warns that these schemes are unlikely to get tax approval and could face a 40 per cent tax charge. Standard Life marketing technical manager John Lawson says: “This is clearly exploiting a grey area in the nature of SSASs but it is clear from the HMRC statement that they regard SSAS as a money-purchase scheme.”
IN Partnership celebrates its fifth anniversary this year and says it will double in size by 2008. Group chief executive Kevin McDonagh, group chairman Stanley Lovell and group commercial and legal director Julian Cole set up the Horsham-based network on July 1, 2000 under the Inland Revenue Enterprise Incentive Scheme. The network has its own […]
Keydata’s secure income bond achieved sales of 4m within three days of launch last week – the highest uptake of any of its products. It invests in corporate protection insurance policies and aims to pay a 7.5 per cent annual income over five years. It is designed to appeal to income investors who are put […]
John’s Eversden scheme – resulting from a legislative anomaly exposed in CIR v Eversden (2003) – allowed a gift of the interest represented in the value of his home to be transferred to his children.
Ben Akrigg will join F&C Asset Management’s Asian equities team as director, Pacific equities. He will report to F&C head of Pacific equities Mike Hanbury-Williams.Akrigg joins from Morley Fund Management where he has worked as a portfolio manager in the Asia Pacific equities team both in Singapore and the UK. Akrigg began his investment career […]
In this short video, Richard Marwood, senior UK equities fund manager at Royal London Asset Management, outlines how he seeks to build portfolios that are resilient to short-term volatility. Watch the video in full The value of investments and the income from them is not guaranteed and may go down as well as up and […]
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