29th May 2008 - Revenue Delay Pension Scheme Tax Repayment Claims

Trustees and Administrators of Self-Invested Personal Pensions (SIPPs) and Small Self-Administered Schemes (SSAS) are alarmed at recent HMRC action when processing tax reclaims for member contributions. 

Recently  HMRC issued notices in respect of a number of schemes that state:

"HMRC reserves the right only to make the payments that it is satisfied are due. Your claim is subject to a random security check and there will be delay in the repayment being issued."

David Bradbury, Head of Taylor Patterson's SIPP & SAS Division says "This could  have serious implications for the funding of property purchase s and the payment of member benefits in SIPP and SSAS arrangements".

To read more click here.

1 May 2008 - In-Specie Contributions

Much has been written in the specialist pensions press and elsewhere about transferring assets to a pension scheme in lieu of making a cash contribution under HMRC's regulations that came into force on 6 th April 2006– “In-Specie Contributions”. On the face of it this is a very simple proposition, a member, an employer or third party simply transfers an asset to a pension scheme as a contribution and benefits from tax relief. However, for the unwary there are significant pitfalls and HMRC published guidance on the subject is not explicitly clear.

David Bradbury, Head of Taylor Patterson's SIPP & SSAS Division has written a useful guide to this complex subject.

To read more click here.

10 October 2007 - Scheme Pensions Hit

The Finance Act 2007 included the much heralded legislation to tax any remaining fund underpinning an Alternatively Secured Pension (ASP) on the death of the recipient after age 75. The combination of inheritance tax and other tax charges means that the total tax payable can be as much as 82% of the value of the fund.

As an alternative to taking an ASP, members of most small self-administered pension arrangements (SSAS) and some stand alone group self-invested personal pensions (GSIPPs) can choose to have a Scheme Pension.

Although earlier this year the Treasury had signaled its intention to treat Scheme Pensions in the same way and issued a consultation paper on the subject, some pensions commentators thought that as a result of the lobbying that followed the Treasury had decided not to attack Scheme Pensions.

Alas that was not to be the case. In yesterday's Pre-Budget Report the Chancellor announced that legislation will be included in the Finance Bill 2008 to impose inheritance tax and unauthorised payments charges if, on the death at any time of a person in receipt of a Scheme Pension, the value of the benefits of a "connected person" - typically co-directors and family members - in the same arrangement increases.

These proposals will not apply to pension arrangements with more than 20 members and any increase in the benefits of members on the death of a person in receipt of a Scheme Pension is applied equally to all members.

Although these proposals do, at first glance, appear to put recipients of Scheme Pensions at the same disadvantage as those taking ASP that may not prove to be the case in practice. Most SSAS and the few stand alone GSIPPs have more than one member with pooled assets each under its own trust. Thus whilst it will not be possible to avoid these punitive tax charges completely, the trustees with actuarial advice may be able to mitigate the impact significantly. The draft legislation has been published and there is no doubt that it will be examined closely over coming weeks.

26 September 2007 - Taylor Patterson launch group SIPP

September 2007 sees the official launch of the Taylor Patterson Group SIPP.

For business partners to buy property through a group of linked conventional SIPPs can be complex and expensive. This is because most conventional non-insured SIPPs are constituted under a single master trust of which there are hundreds of members. The members are usually attached to the master trust by a supplemental deed. Therefore, the SIPPs of  business partners  wishing to buy  property  have to do so as "tenants in common".

Additionally, if borrowing is required to finance the property deal, a separate loan is normally set up for each member SIPP adding further to the costs and complexity.

The Taylor Patterson Group SIPP overcomes these problems as each Group SIPP is a separate Registered Pension Scheme constituted and governed by its own deed and rules. There is no supplemental deed needed to enable individuals to become members and therefore there is no need for the property to be purchased under a tenancy in common and only one loan is  needed should borrowing be required.

This is an exciting development in Taylor Patterson's product range as very few other providers offer this proposition .

To read more about the Group SIPP Click Here

1st August 2007: Over 50? - Then rising interest rates could be good for you

The rise in interest rates over the last twelve months or so has meant that the maximum pension that can be taken from most private pension plans has increased by nearly 12%.

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Under the Revenue's Taxable Property Rules if a pension scheme holds residential or other "taxable property" punitive tax penalties will be incurred. The Revenue defines "residential property" as "a building or structure that is used or suitable for use as a dwelling." Elsewhere in the Rules it is stated that a test as to whether or not a property is "residential property" is "would a person normally live in that dwelling?"

That is all very well, but if a pension scheme acquires say a house that is not fit for habitation, how does the pension scheme administrator evidence the property is not suitable for use as a dwelling? Should at a later date, after the property has been converted to commercial use, the Revenue challenge the view that it was not suitable for use as a dwelling at the time it was bought, the physical evidence will no longer be available because the property has been repaired and structurally altered. The administrator could be faced potential difficulties in justifying its opinion.

Taylor Patterson has written to the Revenue proposing a solution to this dilemma.

4th May 2007 : Taylor Patterson Downtown

Taylor Patterson Managing Director Gillian Bardin and David Bradbury, who heads up the firm's SIPP/SSAS Division, attended the inaugural event at the Forum, Winckley Street of Downtown Preston in Business the City's new business club dedicated to improving local private sector trading conditions. It can be found at http://www.downtownpreston.com/index.php

Gillian said "Taylor Patterson has been in Preston for over 25 years and this is the first business club to be established with the prime objective of furthering the interests of the city's businessmen and women. It can only be a success".

David added, " A much needed forum for businesses to exchange ideas and discuss how we can work together for the benefit of our businesses and the City".

6th April 2007 : Taylor Patterson Receives FSA Authorisation as SIPP Provider

Taylor Patterson has joined an elite list of truly independent Self Invested Personal Pension (SIPP) providers in the UK after being granted on 13th March authorisation by the Financial Services Authority to act as a SIPP Provider, Operator and Administrator of SIPPs.

From the 6th April 2007, all SIPP providers and operators have to be authorised to carry out those activities.

Taylor Patterson has administered its own SIPP for over 10 years and, prior to 6th April this year, Cater Allen Bank was the "provider" of the Taylor Patterson SIPP. Along with a number of other leading providers, Cater Allen decided not to seek FSA approval for this activity and withdrew from the SIPP market to concentrate on its core activities.

Taylor Patterson Associates Ltd was one of the first firms to apply for and receive approval from the FSA to act as a SIPP Provider and Operator. Taylor Patterson Trustees Ltd remains the professional trustee of the SIPP.

Having achieved this milestone, Taylor Patterson is re-engineering its SIPP packages and is developing some radically new versions which are to be launched this Summer.