CHANGE TO TAX CODE USED ON TRIVIAL COMMUTATION AND SIMILAR OTHER LUMP SUM PENSION PAYMENTS
14 November 2012
We published news last week that HMRC would be publishing a consultation on the draft PAYE amending regulations.
The draft regulations and a Technical Note are to be published on HMRC’s legislation pages and from the Pensions News page on the HMRC website, on 15 November 2012. There will also be a link from ‘What’s new’ on the HMRC homepage.
The document below gives further details of a change to the taxation of certain pension payments which forms part of the amendments.
Tax code on trivial commutation and lump sum pension payments
If you wish to respond to the consultation, please send your responses to the point of contact for this consultation (contact details will be published alongside the draft regulations on 15 November).
ANNUAL ALLOWANCE CHARGE (AMENDMENT) ORDER
21 November 2012
HMRC has published for external comment a draft statutory instrument making a number of changes to the annual allowance legislation following the changes in Finance Act 2011.
The changes set out in the draft statutory instrument are intended to help ensure that the annual allowance rules work as intended. These changes include a reduction to burdens on scheme administrators by extending the circumstances when the deferred carve out applies, and may restrict reductions to the pension input amount in certain situations (draft regulations 4(b), 7(c) and (7)).
If you have any questions or comments on this draft statutory instrument, these should be sent by email to Pensions Policy by 31 December 2012.
CIPP comment On the topic of the annual allowance, a report in the Financial Times has revealed that the Chancellor is considering lowering the threshold of the annual allowance from £50,000 to £40,000 or £30,000. We will no doubt have to wait until 5 December and the Autumn Statement to find out if this rumour is true or not.
PENSIONER TAX REVIEW LEADS TO HMRC CHANGES FOR THE BETTER
30 November 2012
Following the publication of the interim report on the review of pensioner taxation published by the Office of Tax Simplification (OTS) earlier in the year, HMRC has implemented a number of improvements to make things easier for pensioners. The independent OTS is currently finalising the second stage of its review of pensioner taxation and is due to report simplification recommendations in January. The interim report looked at identifying the areas of the tax system that cause older taxpayers the most concern and HMRC has now set out a number of improvements already underway as a direct result of the OTS’s work.
CIPP Policy News Journal
12/04/2013, Page 272 of 362
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