The Budget has increased the lifetime allowance by £50,000 to £1.65m and lifted the annual scheme allowance by £10,000 to £235,000.
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Chancellor Alastair Darling scrapped the 10pc starting rate of tax for pensions and earned income; reduced the basic rate of income tax by two percentage points to 20pc; and increased the ceiling for paying national insurance contributions from £34,840 to £40,040.
These changes – which will take effect from April 6 – will reduce net payments to pension schemes.
And, while tax relief is given automatically via net pay arrangements in occupational schemes, basic rate taxpayers will still only get 20pc tax relief – meaning a reduction in take home pay or less money going into the pension.
Generally speaking fiduciary management involves outsourcing of the day-to-day management of a pension scheme to a lead manager with a high degree of transparency so that the manager’s decisions can be easily scrutinised and overall control is retained by the trustee board.
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