UK - The Inland Revenue has removed an anomaly which had led to the "double counting" of car and fuel benefits in tax calculations.
Benefits provided by an employer are subject to income tax if the employee earns more than £8500 a year.
All benefits – including car and fuel concessions – received by an employee are counted in deciding whether earnings are above the limit.In addition, all benefits provided by vouchers, tokens or credit cards are taxable regardless of the level of earnings.
Previously, tax law meant the value of car and fuel benefits – often provided through vouchers, tokens and credit cards – could be added twice to the calculations. This “double counting” could take employees over the £8500 limit.
But the Inland Revenue’s Extra Statutory Concession – which takes immediate effect – means that car and fuel benefits will now be exempt from calculations for vouchers and credit cards.
The Inland Revenue said the concession would give employees a reduction in tax liability which they may not have been entitled to under the “strict letter of the law”.
PP has compiled a list of what to watch out for over the coming months.
Canada Life has signed a £351m bulk annuity contract insuring the pensioner liabilities of 2,510 members and dependents in the AA UK Pension Scheme.
In this week's Pensions Buzz, we want to know if you believe there is ever a case for combining retirement savings products with other savings products, and if the PPF levy for sponsorless schemes is appropriate for DB consolidators.