a draft TIIN and draft guidance
The documents provide details to the change that is proposed to the pension tax rules, from April 2015, to give individuals aged 55 and over greater flexibility to access their pension savings. The changes in the published draft clauses will: remove the higher tax charges where people take pensions under money purchase pension savings as they wish; increase the flexibility of the income drawdown rules by removing the maximum ‘cap’ on withdrawal and minimum income requirements for all new drawdown funds from 6 April 2015; enable those with ‘capped’ drawdown to convert to a new drawdown fund once arranged with their scheme enable pension schemes to make payments directly from pension savings with 25 per cent taken tax-free (instead of a tax-free lump sum) introduce a limited right for scheme trustees and managers to override their scheme’s rules to pay flexible pensions from money purchase pension savings remove restrictions on lifetime annuity payments; ensure that individuals do not exploit the new system to gain unintended tax advantages by introducing a reduced annual allowance for money purchase savings where the individual has flexibly accessed their savings; and, increase the maximum value and scope of trivial commutation lump sum death benefits. There is a technical consultation period on the draft regulations of four weeks where views from interested parties are encouraged. Comments on the drafts should be sent by email to Pensions Policy by 3 September 2014.
Should you have any comments that you wish to add through the CIPP Policy team please contact Samantha Mann at policy .
Pensions Regulator issues new guide to record keeping
11 August 2014
The Pensions Regulator is concerned that too many pension trustees are not maintaining the records that they need to manage pension entitlements accurately.
The Regulator reports on a number of recent failures in data quality, and has issued a new quick guide to help trustees get to grips with record-keeping.
HMRC Pension Newsletter 64
19 August 2014
Issue 64 of HMRC Pension Schemes Newsletter has been published and contains the latest news on a variety of subjects along with a reminder about IP2014 and applying for individual protection on pension savings. Applications can now be made online and there is an online tool which aims to help individuals decide whether to apply for IP2014 . The Lifetime allowance checking tool can be found at the HMRC website or via a link in the Newsletter 64 . The Newsletter also contains information about the tax summary which HMRC plan to send out to approximately 24 million tax payers in October 2014. The new personal tax summary will show how income tax and national insurance contributions have been calculated for the
CIPP Policy News Journal
08/04/2015, Page 386 of 521
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