Tax relief is given on pensions to encourage saving to provide benefits in later life. Accessing benefits (directly or indirectly) before age 55 will result in a liability to UK tax charges in all but the most exceptional circumstances. You should seek suitable professional advice including from a regulated financial adviser.
Back to Contents
Money Purchase Annual Allowance to remain at £10k 5 May 2017
One of the measures removed from the Finance Bill in the pre-election wash-up is the reduction of the MPAA to £4,000.
The money purchase annual allowance (MPAA) is the reduced amount of annual allowance of tax-free pensions savings that an individual is permitted if a defined contribution pension fund has been flexibly accessed under the pension flexibility reforms. (The standard annual allowance is £40,000.) The MPAA is designed to limit the extent to which individuals could recycle funds and gain double tax relief and unused amounts cannot be carried forward to later years.
The measure was originally announced at Autumn Statement 2016 and documents published alongside Budget 2017 confirmed that the MPAA would be reduced from £10,000 to £4,000 with effect from 6 April 2017.
However, one of the measures that the shortened ‘rushed through’ Finance Act 2017 dropped from the Bill was the reduction of the MPAA.
We shall have to wait until after the general election to find out if this measure will be resumed.
Back to Contents
Investigations by The Pensions Regulator result in convictions 8 May 2017
The Pensions Regulator (TPR) has secured its first two convictions where businesses have refused to provide documents required when under investigation.
First criminal conviction A solicitor and the firm where he is a partner have been ordered to pay more than £16,000 in fines and costs for refusing to give TPR documents which were required as part of a wider investigation. This represents the first criminal convictions TPR has secured. Read more... . Charity boss convicted The head of a charity has been prosecuted and ordered to pay £6,500 for refusing to give TPR information linked to an investigation into unusual scheme investments. This is only the second time TPR has taken such action. Read more... . Trustees banned to protect scheme assets TPR has also published a report about how they banned the trustees of the 5G Futures pension scheme. They prohibited John Garry Williams and Susan Lynn Huxley from being trustees of any pension scheme on the grounds that neither is fit and proper people to hold the position.
Back to Contents
The 'forgotten fifties' 9 May 2017
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
Page 128 of 145
Made with FlippingBook - Online Brochure Maker