enable money purchase pensions in payment to be paid as a trivial commutation lump sum.remove the rule on paying a charity lump sum death benefit out of drawdown pension funds and flexi-access drawdown funds where the member dies under the age of 75 because the equivalent tax-free payment may be made as another type of lump sum death benefit.enable dependants with drawdown or flexi-access drawdown pension who would currently have to use all of this fund before age 23 or pay tax charges of up to 70% on any lump sum payment, to continue to access their funds as they wish after their 23rd birthday.replace the 45% tax charge on serious ill-health lump sums paid to individuals who have reached age 75 with tax at the individual’s marginal rate.remove the requirement that a serious ill-health lump sum can only be paid from an arrangement that has never been accessed.General description of the measureĪ number of minor changes are being made to the pensions tax rules to ensure that they operate as intended following the introduction of pension flexibility in April 2015. Scheme administrators of registered pension schemes. Individuals with dependant’s drawdown or flexi-access drawdown pensions who will cease to be a dependant on reaching age 23. Members of registered pension schemes who have money purchase pensions in payment and their total pension wealth does not exceed £30,000. Members of registered pension schemes who have a life expectancy of less than 12 months.
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