Pensions Freedom Round The Corner

We are on the threshold of the most significant changes to the private pensions and tax regime for decades, with changes taking effect from 6 April 2015.

The new rules are exciting and, on the whole, beneficial, but there are also a number of factors to be aware of, such as the possible restriction of tax relief on future pension contributions. The principle changes/effects are:

  • No need to take an annuity on retirement or at age 75
  • The potential to access all or part of the pension fund at will from age 55
  • Monies taken will be part tax-free cash and the balance taxable
  • All untaken funds remain outside the Estate for IHT purposes
  • The money passes tax-free to the spouse etc where death occurs prior to age 75.

All of this opens up exciting tax planning opportunities, both as regards income tax and inheritance tax. It will be of particular interest to company owner/managers and any directors who are remunerated wholly or partly by way of dividends. Also to:

  • Anyone already with a pension fund in income drawdown or who may now wish to do so and/or access their pension fund
  • Individuals paying significant annual pension contributions;
  • Those with a potential IHT liability, who either have a current pension plan or would consider setting one up.

In conjunction with our colleagues in our Financial Planning team we are running seminars in Leeds and York on March 10th and 11th respectively to guide our clients through this minefield.

For more details on the pension changes and tax implications please contact Ray Cadman at rcadman@garbutt-elliott.co.uk.

For details about the free seminars and securing your place please contact the events team 01904 464100 or events@garbutt-elliott.co.uk.