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OVERVIEW
In December 2002 the Government announced its intention to reform the taxation of pensions by replacing the profusion of different rules for the eight types of pension arrangements with one set of rules to cover all arrangements both existing and new.
After a period of consultation and having published revised proposals in December 2003, legislation was laid before parliament in the 2004 Budget and was enacted as part of the Finance Act 2004. Further amendments were included in the Finance Act 2005 and in the Finance Bill 2006. The new regulations came into force on 'A Day', 6th April 2006.
Taylor Patterson along with other professional practitioners in the pension industry welcomes the changes. However, as with all major reforms there are 'transitional' situations that are complex. The new legislation contains provisions which go a long way to protecting the benefits in existing arrangements and it is important that individuals with benefits in pension arrangements at 5th April 2006 take professional advice as to what action they should take.
The new regulations are very prescriptive and the considerable discretion the Revenue had as to how its rules were to be applied before A Day largely no longer exists. This can be evidenced by the fact that before A Day the Revenue published two manuals for use by practitioners giving guidance as how the relevant legislation should be applied to Occupational Pension Schemes - IR12 and to Personal Pensions -IR76. These two manuals consisted of 600 pages. These manuals have been replaced by The Registered Pensions Schemes Manual that runs to over 1400 pages!
Taylor Patterson has published a series of Bulletins on the reforms that can be found on this website. Please note, however, the information contained in these Bulletins reflects Taylor Patterson's understanding as at the date of each Bulletin of how the legislation will be applied from 'A Day'. It is therefore important that before taking any action, individuals seek further advice and in this regard Taylor Patterson will be pleased to assist.
To find out more information, please click on one of the links below in order to open a PDF document: -
| Protecting Your Pre-A Day Benefits (August 2006) |
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Download PDF (841kb) |
| Employer Contributions (March 2006) |
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Download PDF (315kb) |
| Is there a Future for SSAS? (March 2006) |
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Download PDF (240kb) |
| Summary (March 2006) |
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Download PDF (414kb) |
| Residential Property (December 2005) |
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Download PDF (165kb) |
| Borrowing (October 2004) |
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Download PDF (240kb) |
If you are having problems viewing any of the above documents, please click here to download the latest version Adobe Reader .
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