The new tax regime for pensions finally
takes effect from 6 April 2006, referred to as ‘A’ day.
There will be a single set of rules for all registered
pension schemes. A summary of the rules is set out in the
link below.
On budget day the government also published further
guidance on how the inheritance tax provisions will apply
to pension funds invested as an alternatively secured
pension (ASP). The pensions tax rules require an individual
to secure an income before they reach 75. Most people
will have an annuity or scheme pension, but ASP has been
provided as an alternative for those people who have
a principled religious objection to annuitisation.
Internet Link:
For a summary of the new pension rules
go to:
A day rules
HMRC budget notice
For details on ASP go to:
IHT and ASP
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