Pensions news for accountants and solicitors

Pensions News for Accountants and Solicitors from PML following the Chancellor’s Autumn Statement. 

We thought we would draw your attention to what is happening in the pensions’ world, having been prompted by the recent Autumn Statement from the Chancellor.

Specialists in SSASs, SIPPs and Independent Financial Advice

The PML Group are specialists in Pensions and Investments.  As Pension Administrators and Trustees, we preside over a great many Small Self Administered Schemes (SSAS) and SIPPs – but in addition to these duties we complete our comprehensive service offering with our authorised Independent Financial Advisory practice, which provides advice relating to employee benefits and investments.

We work closely with accountants and solicitors, who often introduce us to those of their clients who they believe would benefit from our specialist knowledge of SSASs and SIPPs, along with Independent Financial Advice relating to employee benefits and investments.

Our IFA practice, PML Financial Services Limited, recently celebrated the award of Chartered Financial Planner Status, in recognition of the company delivering the highest standards of business practice and professional pensions’ advice.

We’re delighted about this, and with ‘pensions’ being such a hot topic just now, we thought it would be a good idea to ‘reality check’ what’s going on, to cut through the spin and recognise the issues that really matter in this rapidly changing pensions’ environment.

Current important issues for Pensions:

1. Pension Flexibility 2015

First announced in this year’s Budget and then significantly improved on 6th August and 28th September, the genuine freedoms to withdraw both taxable and tax free capital and income from an accumulated pension fund is shortly to be with us.

The benefits of pension drawdown have been enjoyed by SSAS and SIPP members for many years – but now complete flexibility in taking retirement benefits post age 55 is about to arrive.

The Government’s ‘Taxation of Pension Bill 2014’, will open up a new era of investment, work and retirement planning.  Certain easements are already in place – with the full impact of the new rules taking effect on 6th April 2015. See our Bulletin 48 for our initial thoughts and comments.

2. Inheritable Pension Funds

Following George Osborne’s Autumn Statement, inheritable pension funds now not only covers Drawdown pots but also certain annuities.

The effect of these changes is likely to be far-reaching – for they introduce the potential for children, grandchildren, other relatives and friends to inherit residual pension pots, free of IHT.  Two key points are:

  • The inherited pension fund will only be taxable if the Member’s death occurs after age 75.
  • If paid as a pension, tax is payable at the beneficiary’s(ies’) marginal rate.

We now know that death after 75 provides lump sum payments to beneficiaries with a tax charge of 45%, but if death occurs after 6 April 2016, the tax charge will revert to the beneficiary’s(ies’) marginal rate.

Pensions are in the Spotlight. Contact us for help and advice for your clients

At the moment ‘pensions’ are right in the media spotlight.  Clients are coming to realise that there’s lots to do.  At PML we’re here to help you and your Clients.  We’ve been managing drawdown, flexible retirement and company schemes for many years.

Contact us for an initial FREE chat.

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