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Pensions

Meeting an adviser

Advising on DB Pension Transfers – New COBS Rules from 1 April 2018

On 26 March 2018, the FCA issued Policy Statement PS18/6 Advising on Pension Transfers – feedback on CP17/16 and final rules and guidance. Within PS18/6 are updates to the Conduct of Business Sourcebook (COBS) regarding pension transfers, conversions and opt-outs. Topic:General
Couple

Adviser Charging and Pensions

HM Revenue & Customs has published guidance explaining the affect of Adviser Charging facilitated by deduction from a client’s pension. Topic:General
Business man with tablet

VAT & adviser remuneration

This article is designed to outline the general principles of how VAT is related to the supply of goods and services in Financial Services. Topic:General
Overlooked pension points

Commonly overlooked points in pensions

A series of brief one line reminders to some of the popularly overlooked pension points. Topic:Planning Solutions
Completing forms

Non auto-enrolment funding options

People overlook pension funding options which may be available to higher earners without breaching the auto-enrolment rules. Here we look at a pre A-Day concept applying to the new pension regime and funding. Topic:Planning Solutions
Child money

Lifetime Allowance and Pension options part 1

This article discusses the effects of the reduction in the Lifetime Allowance and the options available under pensions. Topic:Planning Solutions
Coins

Lifetime Allowance and Pension options part 2

This article discusses the effects of the reduction in the Lifetime Allowance and the alternative savings options other than your own pension. Topic:Planning Solutions
Couple meeting adviser

Divorce and Pension Sharing Process in the UK

Prior to 1 December 2000, couples getting divorced in the UK had the option when considering their pension funds of either offsetting their pension benefits against other assets in their estate or applying an earmarking order. Both of these methods can have drawbacks for both parties. Topic:Planning Solutions
Playing chess

Planning to protect your pension - PoA

There are many issues within pensions that need decisions to be made and require a full understanding - something that some may not be capable of as they get older and/or lose mental faculty. Topic:Planning Solutions
Pen and cards

Bankruptcy and pension scheme benefits

This article outlines the impact on an individual’s pension benefits if they are declared bankrupt. Topic:Planning Solutions
Handing over papers

Pension rules: Care and State benefits

State benefits and care home fees can be affected by how and when pensions are taken - and even if they are not taken. This article looks into some of the effects the new pension legislation could have on these benefits. Topic:Planning Solutions
Man opening safe

Opening retirement income options

Phil Carroll runs through a worked example detailing how you can efficiently supplement a client’s retirement ‘income’ through other tax wrappers. Topic:Planning Solutions
Calculator and piggy bank

Income tax considerations for pensions

Income paid from a UK pension fund will be paid under the Pay-As-You-Earn (PAYE) regime meaning this will be paid after tax has been deducted. This taxation can depend on when and how the withdrawal is being made. Topic:Planning Solutions
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Non-residence Enhancement Factor and the LTA for Money Purchase Schemes

These details are an overview of the non-residence enhancement factors for money purchase schemes. Topic:QROPS & QNUPS
London town

General comparison between QROPS for UK residents and non-residents

This tables shows a broad comparison of benefits (or not) of QROPS for UK residents and non-residents compared to a standard UK registered pension scheme. Topic:QROPS & QNUPS
Ballot Box

QNUPS – your questions answered

This article aims to provide generic information for financial advisers about the features of overseas pension schemes that also meet the Qualifying Non-UK Pension Schemes regulations. Topic:QROPS & QNUPS
Brainstorming

Requirement for advising on a QROPS transfers from a UK Defined Benefit Scheme

Clients will now need expert pensions advice before transferring UK Defined Benefit schemes to a Qualifying Recognised Overseas Pension Scheme (QROPS) which further emphasises the importance of independent advice in this area. Topic:QROPS & QNUPS
Analysis

QROPS rules and reporting

How an overseas pension scheme can qualify as a QROPS, what undertakings such schemes must make to UK HM Revenue & Customs and the requirements on UK registered pension scheme transferring pension funds to QROPS. Topic:QROPS & QNUPS
Couple by the sea

The overseas transfer charge

The overseas transfer charge rules apply to pension transferred from UK registered pension schemes to QROPS where the request to transfer is made on/after 09 March 2017. Topic:QROPS & QNUPS
Pen and cards

QROPS and the overseas transfer charge

The UK Government has announced a 25% tax charge that applies to certain transfers from UK registered pension schemes to QROPS. Topic:QROPS & QNUPS
Completing Forms

QROPS and Chargeable Events

Our UK tax reporting obligations as an offshore insurance company in respect of QROPS investing into our offshore bonds, and taxation of the offshore investment bond held by a QROPS where the member has subsequently become UK resident. Topic:QROPS & QNUPS
Open book

Comparison of QROPS jurisdictional rules

This table gives a broad comparison of some of the benefits and taxation rules that can be taken from a QROPS that would apply in certain jurisdictions. This is not a comprehensive list. Topic:QROPS & QNUPS
Coloured Housing

Overseas pensions and QROPS requirements

The impact on clients holding overseas pensions that previously met the Qualifying Recognised Overseas Pension Schemes requirements, but subsequently no longer meet the requirements to be a Qualifying Recognised Overseas Pension Scheme. Topic:QROPS & QNUPS
Coins

Transfers into QROPS

This article aims to provide areas for financial advisers to consider when advising clients on transferring a UK pension into a Qualifying Recognised Overseas Pension Scheme. Topic:QROPS & QNUPS
QNUPS and UK IHT

QNUPS and UK IHT

This article explains what Qualifying Non UK Pension Schemes are and the current UK inheritance tax position for these schemes. Topic:QROPS & QNUPS
QNUPS and UK Collective Investments

QNUPS and UK Collective Investments

This article explains our understanding of the taxation of the UK collective investments held by a Qualifying Non-UK Pension Scheme where the member is, or has become UK resident. Topic:QROPS & QNUPS
Tailor

Defined benefit occupational pensions

This article explains the revaluation and escalation requirements that apply to Occupational pension scheme benefits. Topic:Escalation and revaluation
Open book

Guaranteed Minimum Pension benefits

The following sets out in detail the rules applying to the GMP that apply to members with pre 6 April 1997 service in a defined benefit contracted-out scheme. Topic:Escalation and revaluation
Messy desk

Auto-enrolment: an overview

This article examines the key workplace pension scheme requirements. Topic:Auto enrolment and state benefits
Completing forms

Non auto enrolment funding options

People overlook pension funding options which may be available to higher earners without breaching the auto-enrolment rules. Here we look at a pre A-Day concept applying to the new pension regime and funding. Topic:Auto enrolment and state benefits
Handing over papers

Pension rules: Care and State benefits

State benefits and care home fees can be affected by how and when pensions are taken - and even if they are not taken. This article looks into some of the effects the new pension legislation could have on these benefits. Topic:Auto enrolment and state benefits
Buildings skyline

Pension salary/bonus sacrifice

Salary sacrifice allows an employee to give up an amount of their salary and replace it with an employer’s pension contribution creating a larger pension contribution than they would have paid themselves for the same or lower net cost. Topic:Pension contributions and Tax relief
Business man walking

Personal pension higher rate relief

Higher rate tax relief is given by increasing the basic rate and higher rate band by the amount of gross contribution paid into a personal pension. The effect of this is that the investor will get higher rate relief by paying basic rate tax on income that they would have otherwise paid higher rate tax on. Topic:Pension contributions and Tax relief
London town

Removal of personal allowance

From the beginning of the 2010/11 tax year individuals with ‘net adjusted income’ in excess of £100,000 had their personal allowance reduced. Topic:Pension contributions and Tax relief
Hands

Explaining how annual allowance and earnings limits interact

When looking to make a contribution into a pension an individual must consider annual allowance & carry forward, and tax relief limitations relating to earnings. This article explains how they interact. Topic:Pension contributions and Tax relief
Recycle

Considerations of recycling

What is considered recycling? What about the consequences of recycling? This article will look at what recycling is, what can happen if recycling takes place and how to avoid recycling. Topic:Pension contributions and Tax relief
group of people

Employer contributions

This article covers the impact that employer contributions will have in relation to the pension changes introduced from 6 April 2011. Topic:Pension contributions and Tax relief
Pen and cards

Pension contributions

Ordinarily it is clear whether a contribution is being made by an individual, third party or employer. However, sometimes identifying individual or business contributions is difficult. Topic:Pension contributions and Tax relief
Forest

Death benefits flowchart

From April 2015 the death benefit rules are changing to allow for true intergenerational sharing of pension funds on death. Topic:Death Benefits
Windmills

Pension transfers and potential IHT

Much has been said concerning HMRC’s ability to treat a pension scheme as within a client’s estate on death based on the fact they had transferred within 2 years of death. Here we briefly discuss when this may apply. Topic:Death Benefits
highway

Continued relevance of bypass Trusts

The concept of bypass trusts have been around for a long time. Topic:Death Benefits
st pauls

Small Pots and Triviality 

April 2015 saw the introduction of one of the biggest changes to pensions ever seen. This is potentially changing the fundamental concept of a pension and what it can be used for. Topic:Taking Pension Benefits
Cash

Scheme specific lump sum protection

Some individuals who are members of occupational pension schemes or section 32 policies are afforded a degree of protection, known as scheme specific tax-free cash protection. This article explains how this protection works. Topic:Taking Pension Benefits
Presentation

Flexibility in capped drawdown

A drawdown arrangement that allows a client the flexibility to lock in a higher capped drawdown income limit is invaluable. We examine the issues that can affect the maximum income under capped drawdown and the options in a drawdown arrangement that are required to take advantage of them. Topic:Taking Pension Benefits
hands

Block Transfers

This article explains what a block transfer is and how it can protect tax-free cash and early retirement ages when pension rights are transferred between pension schemes. Topic:Taking Pension Benefits
Lions

Protected tax-free cash exceeding 25%

This article explains the need to protect valuable pre A-Day tax-free cash entitlements held in occupational pension schemes. Topic:Taking Pension Benefits
Pen and glasses

Lifetime Allowance calculations for different forms of protection

A summary of the Lifetime Allowance calculations which should be used for different forms of protection. Topic:Transitional Protections
Man opening safe

Non-residence Enhancement Factor and the LTA for Money Purchase Schemes

These details are an overview of the non-residence enhancement factors for money purchase schemes. Topic:Lifetime Allowance
Coins

Lifetime allowance excess options to consider

As the lifetime allowance (LTA) has reduced more people have to decide the options they have concerning any pension fund excess they may have. Topic:Lifetime Allowance
Analysis

Payments of the Lifetime Allowance tax charge – process chart

This flowchart illustrates the process and liability of any lifetime allowance excess payment and who pays the tax. Topic:Lifetime Allowance
Camper van couple

The lifetime allowance excess charge

The LTA is the maximum amount an individual can accrue in their registered pension schemes. If these limits are exceeded there will be an LTA excess charge applied to benefits over this permitted maximum. Topic:Lifetime Allowance
Couple on bench/by the sea

Transfer into a UK registered pension from an overseas pension scheme

A simple guide to the acceptance of an overseas transfer into a UK registered scheme with the general process required and potential for gaining an enhancement to the lifetime allowance. Topic:Lifetime Allowance
Handing over papers

Fixed and Individual Protection 2016

With the lifetime allowance reducing from £1.25 million to £1 million on 6 April 2016, what new protections will be available for members of a pension scheme to help protect the savings that they have already built up? Topic:Lifetime Allowance
Pen and calendar

Lifetime Allowance calculations applicable after 5 April 2019

Table detailing the various lifetime allowance protections. Topic:Lifetime Allowance
Pen and glasses

Lifetime Allowance calculations for different forms of protection

A summary of the Lifetime Allowance calculations which should be used for different forms of protection. Topic:Lifetime Allowance
People around desk

Tax-free cash and the lifetime allowance rules

With the introduction of Fixed Protection 2012, Fixed Protection 2014 and Individual Protection in addition to the existing Enhanced Protection and Primary Protection, this article is designed to summarise the calculations for each circumstance. Topic:Lifetime Allowance
coins

Annual Allowance and Scheme Pays for DC Schemes

In 2011 HMRC introduced an alternative method of taking any annual allowance excess charges. This new method is called “Scheme Pays”. Topic:Annual Allowance and Carry Forward
Camper van couple

Capped Drawdown, Flexi-access and triggering the money purchase annual allowance

April 2015 saw the introduction of one of the biggest changes to pensions ever seen. This is potentially changing the fundamental concept of a pension and what it can be used for. Topic:Annual Allowance and Carry Forward
Sterling notes

Carry forward of Annual Allowance

Carry forward relates to unused annual allowance not unused tax relief. If the individual relies on carry forward to make a large personal contribution they must have the earnings in the current tax year to cover it. Topic:Annual Allowance and Carry Forward
Man on mac

Money Purchase Annual Allowance restrictions after 2015

With some of the biggest changes to pensions coming in April 2015, we look at the potential impact on contributions to money purchase pensions. Topic:Annual Allowance and Carry Forward
Hands

Explaining how annual allowance and earnings limits interact

When looking to make a contribution into a pension an individual must consider annual allowance & carry forward, and tax relief limitations relating to earnings. This article explains how they interact. Topic:Annual Allowance and Carry Forward
analysis

Helping you calculate Carry Forward

This simple guide is designed to help you fill in all relevant information on the attached table to enable you to calculate unused Carry Forward allowances. Topic:Annual Allowance and Carry Forward
girl in garden

Pension Input funding – July Budget 

The attached table outlines the potential options for pension funding under the transitional "mini PIP's" created by the Summer Budget on 8 July 2015. Topic:Annual Allowance and Carry Forward
Apples

PIP changes – 2015 July Summer Budget

Significant changes to pension input periods (PIPs) have been introduced and from 6 April 2016 all PIPs will run in tax years. These PIP start and end dates will not be able to be altered by either the provider or the member. Topic:Annual Allowance and Carry Forward
Presentation

Pension tools

See our range of Pension tools. Topic:Pension Tools

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