Lifetime Allowance Transitional Protection.
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Lifetime Allowance Transitional Protection.
I imagine this'll affect a few. The g'ment did plan on releasing info by now but "unfortunately" it hasn't been able to. Section 5 refers. Don't let it slide off your radar.
https://www.gov.uk/government/public...nal-protection
https://www.gov.uk/government/public...nal-protection
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I have a couple of years until retirement . I am pretty close to the LTA and if we did get a pay rise I suspect I may breach it. Is there anything that I can do, in the time I have left, to avoid paying more tax on my pension?
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You could take the view that breaching it will be annoying, but as you don't contribute to AFPS you're getting less of something which wouldn't cost you anything anyway. You could take the view that the state regulation will change and that the LTA will increase again once the state has successfully pruned out the higher earners and saved itself money.
A lot is going to depend on your own circumstances; are you looking at a long second career which can allow flexibility with your remuneration package (the latest TUC report this week, shows just how many senior execs are now longer being remunerated via the pension wrapper), what are your views on your dependents getting a larger pension in the event you died etc.
The annoying this is, your salary is abated to reflect a notional contribution, so if you elected to leave the scheme, you don't get paid any more. If I were you, I'd get an annual statement so that you can make an informed decision, or at least put things in context.
A lot is going to depend on your own circumstances; are you looking at a long second career which can allow flexibility with your remuneration package (the latest TUC report this week, shows just how many senior execs are now longer being remunerated via the pension wrapper), what are your views on your dependents getting a larger pension in the event you died etc.
The annoying this is, your salary is abated to reflect a notional contribution, so if you elected to leave the scheme, you don't get paid any more. If I were you, I'd get an annual statement so that you can make an informed decision, or at least put things in context.
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HMRC Pension Schemes newsletter 73 came out on Friday, with details of how to protect against the new £1m LTA. It does seem that the process will be different - there is no deadline to apply for the protection by. That seems to create some issues; some people will only act if they have a deadline and if you're deployed when you need to be thinking about declaring, you might forget to do it.
From a professional perspective, it'll be a lot more difficult to advise new clients in the future. Trying to value funds as they stood in April 2016 will be problematic. Retrospectively, it will be difficult to find out for certain a few years down the line - will Veterans UK be planning to keep the data needed as at 06 April 2016 forever?
If you're planning on retiring shortly after the next FY starts, and if this affects you, make sure you don't hang about with your admin. If anyone needs to make a request, the forms are below.
https://www.gov.uk/government/upload...dated_4_15.doc
https://www.gov.uk/government/upload...FPS_Form14.doc
Here is the latest bulletin, para five refers.
https://www.gov.uk/government/public...3-october-2015
From a professional perspective, it'll be a lot more difficult to advise new clients in the future. Trying to value funds as they stood in April 2016 will be problematic. Retrospectively, it will be difficult to find out for certain a few years down the line - will Veterans UK be planning to keep the data needed as at 06 April 2016 forever?
If you're planning on retiring shortly after the next FY starts, and if this affects you, make sure you don't hang about with your admin. If anyone needs to make a request, the forms are below.
https://www.gov.uk/government/upload...dated_4_15.doc
https://www.gov.uk/government/upload...FPS_Form14.doc
Here is the latest bulletin, para five refers.
https://www.gov.uk/government/public...3-october-2015
