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SJP’s pension audit looks to minimise recovery tax

St James’s Place is warning wealthy individuals that inaction on pension planning ahead of A-Day next April could result in them facing a 55 per cent recovery tax.

SJP is looking to mop up affluent, disintermediated people with the launch of a pension audit service that aims to maximise retirement income post-A-Day.

The audit will consider whether individuals should be looking at either primary or enhanced protection and what level of contribution they should be paying.

The firm is particularly targeting those individuals with pension funds over 1m, employers changing their remuneration packages after A-Day and people whose pension benefits are restricted by the earnings cap.

Head of pensions Ian Price warns that thousands of individuals could end up with substantial tax bills if they exceed the 1.5m lifetime allowance.

He says: “For clients considering protection, they have a simple choice. Do they want to pay 55 per cent tax or no tax?

“A brief window of opportunity exists for people to protect and enhance the value and flexibility of their pensions in the run up to A-Day.”

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