Category: Pensions

185 – Salary Sacrifice under the microscope

New rules for taxing many salary sacrifice arrangements came into force from 6 April. One of the employment trends of recent years has been to make employee remuneration more flexible. Instead of pay and, if you were lucky, a company car and healthcare, ‘cafeteria remuneration’ has become common, giving employees the choice of sacrificing pay…

Read more

169 – Govt U-Turn on Annuity Sales

The Treasury has changed its mind about allowing the sale of pension annuities. When pensions flexibility was announced in March 2014, one of the inevitable criticisms was that the reform came too late for those who had already turned their pension pot into an annuity. A year later the then Chancellor attempted to respond to…

Read more

166 – Age related pension tax relief?

The pre-Autumn Statement rumour mill is suggesting a radical reform of pension contribution tax relief. Could tax relief for pension contributions be based on your age rather than the rate of income tax you pay? It may sound strange, but one idea doing the rounds is that tax relief on pension contributions should become a…

Read more

165 – State Pension Age

The government has published an independent review on the state pension system. There was a time when it was all so simple: men drew their state pension from age 65 and women from age 60. That all started to change in the mid-1990s, when the Pensions Act 1995 set in train a phased increase in…

Read more

158 – The Six Figure Pension Scheme

The fall in interest rates is boosting some pension transfer values. Pension scheme deficits have been hitting the headlines again, and not just those of BHS. The Bank of England's efforts to bolster the post-referendum economy have been to blame. On one widely quoted measure - the Pension Protection Fund's PPF7800 Index - the overall…

Read more

Seek advice before drawing your retirement income

One of the UK's biggest insurance companies has withdrawn from the advisory annuity market. The pension freedom reforms revealed in the 2014 Budget claimed another victim last month as the Prudential announced it would no longer provide annuities via financial advisers. Earlier in the year two specialist annuity providers merged in the face of declining…

Read more

No Pension at Swindon Town FC!

The Pensions Regulator (TPR) has issued a warning to small companies that fail to heed 28-day warning notices to enrol their staff in pension schemes. The regulator states that firms could be hit with a fine that will rise with every passing day until they comply. 95% of small firms who are required to auto-enrol…

Read more

Auto enrolment – beware of the fines

The Pensions Regulator is finding a growing number of automatic enrolment failures. The Pensions Regulator (TPR) recently issued its latest "Compliance and enforcement" bulletin, looking at progress to the end of 2015. This showed that as the size of employers drawn into the scope of auto-enrolment has shrunk, so have the TPR's actions and fines…

Read more

Latest Pension tax relief rumours

There have been more press reports that the Chancellor will reform tax relief for pension contributions in his March Budget. In last July's Budget the Chancellor launched a consultation on 'tax incentivised saving'. It was a curious sort of consultation, in as much as it dwelt largely on the tax cost of the existing pension…

Read more

Selling your pension annuity

The government has set out further details about the secondary annuity market. In last March's Budget the Chancellor launched a consultation considering how existing pension annuity holders would be able to sell their annuity in return for a taxable lump sum. The logic behind the idea was to give existing pensioners the same flexibility as…

Read more