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- Financial Fitness - Published Jan 2018 by Raoul Ruiz Martinez
- Six Tough Questions You Need to Ask - Published in Nov 2017 by Raoul Ruiz Martinez
- Plan for a Successful Retirement - Published Oct 2017 by Raoul Ruiz Martinez
- 5-year Plan, 10-year Plan, 30-Year Plan. Do you have yours? - Published August 2017 by Raoul Ruiz Martinez
- The Will Bank Opportunity by John L Douglas - Published in The Journal of the Law Society of Scotland 17th July 2017
- August 2017 - HMRC & Offshore Accounts for UK Residents
- A New Year, A New Start…. January 2017
- Inheritance Tax (IHT) Planning (Part 3) - Published November 2016
- Planning for a Better Future? Forget Trusts. Think Family Investment Companies! - Published Nov 16
- Inheritance Tax Planning (Part 2) - Published August 2016
- BREXIT: What do we know as investors and what are the unknowns? Published in July 2016
- Inheritance Tax Planning (Part 1) - Published in June 2016
- Why is tidy a key word in financial planning? Published May 2016
- The Future of International Financial Planning - Published in March 2016
- Volatility: Global Financial Markets and Tax - Published Feburary 2016
- Financial Information Sharing for 2016 - Published December 2015
Summary of the 2015 Pension Flexibility - Published 5th May 2015
Offshore bonds get £5k tax free savings boost - Published 29th April 2015
How your peers invest clients’ money: Finesco Financial Services Ltd - Published in Professional Advisor 25th March 2015
- TRUSTS : Good Reasons to Never Make a Change - Published March 2015
- Saving....for Ourselves - Today's children will need A £2.4m pension pot.
- Cash is King - Article Published 25th July 2013
- Saving – Don’t Put Off Till Tomorrow What You Can Do Today - Article Published 23rd May 2013
HMRC Statutory Residence Test - 6th April 2013
- QNUPS Article Published 23rd March 2013
- Old New Year - Article Published 24th January 2013
- Retirement and Savings – The Facts on Inflation published November 2012
- Finesco Prsentation on New Pension Rules - A New Generation Begins
HMRC Pension Tax Relief Changes
- Emergency Budget:
- Budget Day: 22 June 2010
- Capital Gains Tax Angles
- Long Term Care
- QROPS: Transferring UK Pensions Overseas
- The State of Pensions
- ISA Changes Affecting You
Normal investments and advice are simply insufficient. Good advice in investing and managing the capital can pay for itself many times over.
HMRC Pension Tax Relief Changes
On Thursday 14 October 2010 HMRC released its document on proposed changes to the UK’s pension regime. Back in June 2010, the new Coalition Government confirmed that it would continue with the previous Government’s plans to raise tax revenues by restricting pension tax relief from April 2011. However, the new Government wanted to impose their own ideas and indicated that the previously announced changes would come under review, particularly in terms of the complexity being proposed.
The core aspects of the Government’s decisions are as follows:
The Annual Allowance (AA)
The Annual Allowance is the maximum amount of pension contribution that is allowable for tax relief and is currently £255,000 for 2010/11. The new proposals will reduce this to £50,000 from April 2011. As now, contributions will qualify for tax relief at your highest rate of Income Tax, 20%, 40% or even 50%. Interestingly, the new proposals have reintroduced a carry forward facility whereby unused relief from up to three previous years can be rolled forward and used in the current year of contribution. For example, in 2011 if you have not used any previous contribution allowance, you will be able to make a contribution of £200,000 (3 x £50,000 from 2008/09 to 2010/11 plus 2011/12 allowance) and obtain tax relief at your highest rate.
The Lifetime Allowance (LTA)
The Lifetime Allowance limits the amount of pensions that can be built up over your lifetime. Currently, the Lifetime Allowance is £1.8 million for 2010/11. The new proposals will reduce this to £1.5 million but the change has been deferred until 6 April 2012.
There are various provisions already in place for transitional protection and no doubt further, lengthy provisions will be introduced for those who are at or already over the old limit.
Who Is Affected?
The proposals will affect you if you currently contribute into any pension arrangement or someone else, for example, your employer does so on your behalf. However, given that the contribution level and limits have been set reasonably high, it is unlikely to affect more than a small proportion of pension contributors at any particular time. Where it may have some impact is in special situations, such as redundancy or early retirement where larger pension contributions may be made and will now be subject to the new conditions. It is not only Personal Pension schemes which are affected but Final Salary arrangements are also included. The new £50,000 limit which, for Final Salary Schemes, translates into a pension benefit increase of just £3,125 per annum may be problematic for some but the carry forward provisions should help to address the situation.
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