Following pressure from the industry, HMRC has refined its stance on death in service lump sum benefits for those applying for Fixed Protection.
Towers Watson points that the more common forms of death benefit provision, even if they are subject to insurability clauses, will continue to be...
Fixed Protection enables an individual to retain a £1.8m lifetime allowance (LTA) with effect from 6 April 2012, when the standard LTA will reduce to £1.5m. In order to benefit from Fixed Protection the individual must cease all active accrual of retirement pension and/or money...
Andy Bell, chief executive of platform provider A J Bell has called on the government to include a moratorium on changing key pension rules, to last for at least a decade, in the Budget.
Mr Bell says, “The current speculation around changes to the annual allowance and higher rate relief on...
For the first time since 2001/2, Britons saved more into stocks and shares ISAs than personal pensions last tax year.
Figures from the Office for National Statistics show that £14.28bn was saved into personal pensions (excluding stakeholder) in the 2010/11 tax year compared to £15.837bn...
More of your employees than you think could be high earners in disguise suggests Jean-François Tondreau, Buck Consultants
There has been much debate recently about the excessive remuneration of executives in the UK. According to the report published by the High Pay Commission towards the end of last year, overtly generous pay packages, including pensions, are “deeply damaging” for both the economy and...
LibDems move on higher rate relief reports Ceri Jones, financial journalist
As trailed in this column last month, the LibDems are to call formally for the Coalition to cut tax relief on pension contributions by higher rate taxpayers.
The party’s spring conference in Gateshead in March is also expected to reiterate the call for a “mansion tax” on...
People with ‘enhanced protection’ on pensions valued up to £1.8m could benefit from switching to fixed protection before the tax year end deadline according to Skandia. If they continue with enhanced protection, their maximum tax-free cash allowance will fall to £375,000...
From 6 April 2011 the annual allowance for tax relief on pension savings in a registered pension scheme has reduced to £50,000. Readers will find the calculator on the HMRC website helpful to work out their pensions savings.
A new interpretation of the pension tax rules has opened up opportunities for pension investors to make significant contributions to their pension scheme.
HM Revenue & Customs (HMRC) has announced changes to its interpretation of the "carry forward" rules which allow investors to...
Could free TV licences and free bus passes be axed for millionaires? Ceri Jones, financial journalists reports
Deputy Prime Minister Nick Clegg believes that means testing benefits such as free bus passes and TV licences, currently given to pensioners solely on the basis of their age, could be a politically palatable saving.
The Liberal Democrat leader told the BBC: “We should be asking millionaire...
People with large pensions must act before April 2012 to avoid tax charges.
Individuals with substantial pensions risk suffering avoidable tax charges if they do not take action before April 2012, warns JLT Wealth Management. Anyone who wants to can apply to retain the current £1.8m...
Lorna Buckland, Linklaters, details some practical things for schemes to think about when it comes to dealing with scheme pays
With effect from April this year, the annual allowance reduced substantially from £255,000 to £50,000 a year, bringing many more members within its scope. In some circumstances, a member who incurs an annual allowance charge can take steps to make his or her pension scheme directly...
David Bird, Towers Watson, considers the trends in executive pensions beyond the pension tax changes
Executive pension provision has been dominated in recent times by the impact of changes in the taxation of pensions. It is not surprising, therefore, that the focus has been on the consequences of these changes. Tax is at the heart of why pension has become such an important part of executive...
Over 97% of executive directors in FTSE 350 companies have formal company sponsored pension arrangements in place – yet only one third of UK private sector employees receive a company sponsored pension, according to Directors’ pensions: in it for themselves?.
This report, based on...
More than 18,000 pension investors are at risk of loss of protection from auto-enrolment contributions.
Freedom of Information figures, obtained by platform provider A J Bell, reveal that 18,574 individuals are at risk of losing protection of their pension benefits when new auto-enrolment rules...
More than 18,000 pension investors are at risk of loss of protection from auto-enrolment contributions.
Freedom of Information figures obtained by platform provider A J Bell reveal that 18,574 individuals are at risk of losing protection of their pension benefits when new auto-enrolment rules...
Over 97% of executive directors in FTSE 350 companies have formal company sponsored pension arrangements in place – yet only one third of UK private sector employees receive a company sponsored pension according to Directors’ Pensions: in it for themselves?.
This report published...
Punter Southall has published the latest in its series of High Earners Survival Guides. In this latest note, it covers recent developments including:
HMRC and the DWP have published a number of draft regulations relating to the annual and lifetime allowances
changes have been made to the...
More than half (51%) of British adults don’t have a Will drawn up, according to research by Standard Life.
These figures become even more worrying when broken down by age. Nearly two-thirds (60%) of 35 to 44 year olds don’t have a Will in place, two-fifths (38%) of 45 to 54 year...
Until 5 April, it is likely to remain attractive for employers to establish new employer-financed retirement benefit schemes (EFRBs) or to make additional contributions to existing schemes according to PwC.
Marc Hommel, pensions partner at PwC commented: "For those people hit by the...
