Comment and Blogs
HMRC’s January pension schemes newsletter announced changes to tax codes for pensions, and a few headlines followed proclaiming HMRC had finally fixed the over-taxation issue. It would be fantastic if that was the case, but despite nearly 10 years of getting it wrong, the problem isn’t resolved yet.
Read more: Lisa Webster: Over-taxation of pensions remains an issue
The lifetime allowance may have been consigned to the annals of history but the various forms of protection are still relevant in the new world, especially when it comes to the amount of pension commencement lump sum (PCLS) that can be taken.
Read more: Lisa Webster: Divorce impact on lump sums raises question
While 2024 ended with a lot of doom and gloom in the pension world following the big announcement on inheritance tax (IHT), there was some good news that may have slipped under the radar of some advisers.
As a professional, you will undoubtedly be aware of the effective 60% tax rate on income between £100,000 and £125,140 due to the loss of the personal allowance. For parents of 3 and 4-year-olds the real rate can be much higher.
Read more: Lisa Webster: How to use pensions to beat a tax trap
As Benjamin Franklin, one of the founding fathers of the US, famously said: “In this world, nothing is certain except death and taxes.” When it comes to the realm of pension saving in the UK this is certainly true.
We have heard a lot about vulnerable customers recently. Even before the Consumer Duty came along it was a big area of focus for the FCA and now we all have added responsibility under the duty.