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Standard spots A-Day tax-free cash anomaly

Standard Life claims to have spotted another quirk in A-Day rules which will cause people consolidating multiple pension pots to lose tax- free cash.

The problem, which it says has been confirmed by Revenue & Customs, arises where a person has a protected tax-free lump sum in one scheme and a basic 25 per cent tax-free lump sum in another.

Marketing technical manager Andy Tully says this is common, with more than half of the members in its occupational pension schemes having more than 25 per cent tax-free cash at A-Day.

Many of these people also have other pensions, such as free standing AVCs or personal pension schemes, which pay a 25 per cent lump sum.

Tully says if the person decides to transfer one of these contracts to the other or amalgamate them both into a new scheme such as a Sipp, they will lose tax-free cash unless they pay an additional contribution into the new scheme.

He says: “Tax-free cash sums are one of the major benefits of pensions and people do not want to lose out. It is vital that advisers are aware of the nuances surrounding tax-free cash protection on transfer. Fortunately, paying an additional contribution to the new scheme often solves the problem.”


Winterthur bolsters adviser support in the South-East

Winterthur Life has appointed Samantha Bannister as sales consultant to bolster its adviser support services in the South-East.Bannister joins from a sales consultancy position at Scottish Equitable where she was responsible for developing relationships with key accounts in Surrey.Winterthur director of distribution David Thompson says: “Winterthur has seen a significant increase in business following A-Day, […]

Pearls of wisdom on indemnity

Whenever an industry issue reaches a certain critical mass, there will always be a pundit persuaded to peek out from under the nearest stone to add his or her two-penn’orth. Therefore, it was with trepidation that I read Peter Hargreaves’ latest pearls of wisdom regarding indemnity commission in Money Marketing last week. As head of […]

2008 For Selestia open platform

Selestia/Skandia will launch a complete open architecture platform in early 2008 to complement its integrated wrap.Selestia head of investment marketing Graham Bentley says the wealth management platform will sit alongside its integrated wrap and allow hedge funds, investment trusts and other securities to be held.The pricing structure is likely to follow a Transact-style approach, with […]

This week in Mortgages

The Mortgage Business Expo took centre stage with week with the great, the good and the hungover from the mortgage market all descending on London’s Earl’s Court for two days of well, er, mortgages.

Lifetime ISAs – International Evidence

By Fiona Tait, Pensions Specialist Since the announcement in March, the Lifetime ISA (LISA) has attracted controversy. Heralded as a saviour for the self-employed and the young wanting to get on the housing ladder, the new LISA risks adding confusion for savers trying to fully understand the benefits of new workplace pension savings through auto-enrolment. To […]


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