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There is now no require
· Under the old system, before your 75th birthday (increased to 77 in June), you had to choose between buying an annuity or moving into an Alternatively Secured Pension (ASP) where charges on death were 70 per cent or 82 per cent. Today ASPs no longer exist. You can leave your fund invested for the rest of your life or choose to buy an annuity at any age.
Most people will move into “capped drawdown” when they vest their pension. The inco
· On death after starting drawdown there is now a tax designed to recover past tax relief. This is at a fixed rate of 55 per cent, which is a significant tax increase for those under 75 as their previous rate was 35 per cent. For those over 75 it is a very welco
· Residual pension assets on death are not additionally subject to inheritance tax.
· The 75 age limit at which you can take your pension commencement lump sum has been removed.
· The latest age for lifeti
Since
The tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarised; an individual must take personalised advice.
To keep in touch with the latest developments in the offshore world, check out the latest news on our website www.blevinsfranks.com
By David Franks, Chief Executive, Blevins Franks
Gallery: New UK Pension regulations now in effect |
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