Budget pension changes

Jun 02, 2004 1 Replies
J

I seem to recall Mr G Brown stating that small pension pots (how small ???) could be taken in cash, ie no annuity obligation - sounds wonderful.



As I have my own very small limited company, I pay myself mainly in dividends, taking a very small salary. I do a £3600 stakeholder pension each year (costing £2808 hard cash).



Does this mean that if I get a new pension from a different company each year, I'll be able to take the lot in cash. Or is it the grand total of one's pension invetsments ?



Thanks, John


Vote
Twitter Facebook LinkedIn
D

IIRC, it is to be set at 1% of the Lifetime Allowance - which is 15,000 rising to 18,000 in 2010. It was going to be per fund, then the IR spotted the loophole, so it is now the total funds, AFAIK.

There are also meant to be rules to tax 75% of the fund, raise the minimum age to 60, and restrict the commutation to one tax year only. No doubt the goal posts are on shifting sands. :)

Vote
Twitter Facebook LinkedIn

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required