Unfortunately, both major political parties use pensions as a political football.

This means they change the rules every 5 minutes and what was previously deemed a good thing to do, suddenly is no longer so.

For example, pensions had a lifetime allowance, which was almost halved by consecutive governments, has been recently abolished but is likely to be re-introduced if the Labour Party win the election in 2024.

We can advise you on the implications of the rule changes thus helping you avoid these pitfalls.

Case Study – Example 1

Mr P was concerned that when added to the value of his house, his pension fund would be liable to Inheritance Tax. He was overjoyed to hear that his pension fund is exempt from Inheritance tax and is not include in his estate. If he dies before aged 75, the whole fund can be paid as a tax-free sum. If he dies after 75, any capital or income taken by his beneficiaries is taxed at their marginal rate of income tax, as would be the case if he lives to receive the pension income himself.

Case Study – Example 2

Miss N runs a limited company and is keen to save money for her retirement. She is unhappy about the huge increase in corporation tax (rising from 19% to 26.5%) and feels she will have less money to fund her retirement. We pointed out that if her company funds her pension (up to a maximum of £60,000 per annum), she could save up to £15,900 in corporation tax. She is delighted.

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The earlier you plan, the better...

... get in touch and we'll get the ball rolling.