Pensions Savings - The Tax Issues

Developments in recent years have seen substantial changes to the rules for accessing money purchase pensions and the treatment of funds remaining on death.  These changes have increased the attractiveness of pension and estate planning for individuals.

At the same time the tax relief restriction on annual pension contributions continues to be under the spotlight. This, combined with the reductions to the Lifetime Allowance, puts constraints on tax efficiency and can result in tax charges. In addition, the new state pension arrangements came into operation from April 2016.  

The course aims to examine the detailed rules involved in providing for and accessing a pension taking into account the tax impact of alternative courses of action.

Content will include:

• Pension contributions and tax relief 
  • Mechanics
  • The significance of net relevant earnings
  • The Annual allowance
• Understanding the Lifetime allowance
  • Protection mechanisms
  • When and how the charge applies
• Accessing money purchase pension funds
  • Income and lump sums including small pension pots
  • Money purchase annual allowance rules
  • Reporting
• The taxation of death benefits
  • The significance of age and how benefits are taken
  • The interaction with IHT and estate planning
• The state pension
  • How the new state pension operates
  • Entitlement
• Pensions and divorce
• Workplace pensions – new developments (if any) and points of interest

The above content relates to 2021 events only.