Quantifying the impact of a lifetime allowance charge


TUE, 17 NOV 2020

Every individual has a lifetime allowance (LTA) which sets the total capital value of pension savings that they can draw as tax privileged benefits. There’s no limit to the amount of pension savings an individual can have. However, tax privileges are recouped through the LTA charge where the LTA is exceeded. In this technical article …

Weathering a defined contribution pensions storm


MON, 16 NOV 2020

With changes to defined contribution pensions on the horizon, I look at the burden this could bring on investors who pay higher or additional rate tax… During the summer HM Treasury published a call for evidence around pension tax relief. The premise behind the request is that certain low earning individuals do not enjoy tax …

Platforms must prepare for the inevitable tax consequences of Covid


THU, 29 OCT 2020

With the ongoing global pandemic continuing to loosen the government’s purse strings, Head of Technical Support, Neil MacGillivray looks at the Chancellor’s potential recovery options and the impact it could have on how advisers use platforms… According to the Office for Budget Responsibility, the cost of the Covid-19 pandemic is likely to be more than …

Annual Allowance: Back to Basics


MON, 12 OCT 2020

In the first of our new podcast series, we’re shining a light on the annual allowance… In essence, the annual allowance is a straightforward concept; namely a mechanism to control the tax advantages of pension savings. However, over the years, the successive governments and their constant tinkering with pension tax legislation has added layers of …

Common sense prevails … finally


MON, 28 SEP 2020

Advisers up and down the country would have breathed a sigh of relief following the Supreme Court’s decision in the case of HMRC v Parry and others [2020] UKSC 35, (commonly known as the “Staveley case”), around IHT on transfers made by clients in ill health. In his latest blog Neil MacGillivray reflects on the …

UFPLS – planning for unintended consequences


TUE, 22 SEP 2020

The recent ruling by the Upper Tribunal in favour of HMRC, with respect to tax relief for in-specie contributions, perhaps helps illustrate the complexity of tax legislation and the unintended tax traps your clients could face. The potential loss of in-specie tax relief, in some scenarios, could increase the overall tax bill for the individual. …

CGT hike worries could be off the mark


TUE, 01 SEP 2020

With CGT the subject of the Chancellor’s latest tax review, fears are that a tax hike is imminent. However, going by past OTS reports, Neil MacGillivray explains that it may not all be doom and gloom… The Office of Tax simplification (OTS) has been asked by the Chancellor, Rishi Sunak, to review Capital Gains Tax …

Potential for a property planning headache


THU, 13 AUG 2020

Proposals to ease planning restrictions, where change of use is being considered, could cause some headaches for pension scheme administrators, as well as investors… From September it’s likely that a wider range of commercial properties will be allowed to convert to residential use, without the need for planning permission. Despite these Government proposals, it is …

FCA: 22 years of pension savings gone in 24 hours


TUE, 21 JUL 2020

This article was written and provided by the FCA New analysis as part of the regulators’ joint ScamSmart campaign reveals that it could take 22 years for a saver to build a pension pot of £82,000 – the average amount victims lost to scams in 2018. But despite this, many savers could be at risk …

The Chancellor who keeps on giving


THU, 09 JUL 2020

I can’t believe that there is a TV channel dedicated to Christmas films over the summer. But maybe the season of goodwill has come early given Rishi Sunak’s Summer Economic Update, as it’s very much give, give, give – with no take, take, take, as there were no implied tax increases. Perhaps the most interesting …