Potential changes in Pension regulation from April

HMRC are still rather vague on the exact details but you may like to know the potential changes:

1 – Looking to take away the requirement to purchase an annuity at age 77. Not all companies have systems in place ready for this but most are working on having everything set up by around June or July 2011.

2 – Considering reducing GAD maximum drawdown limits from 120% to 100%.

3 – Most drawdown plans will have to become more flexible allowing ease of stopping or starting premiums at any time.

4 – Consideration being given to allowing a higher taxable income to be taken from a drawdown plan, possibly with no maximum limit, assuming that the client is in receipt of £20,000 per year Guaranteed Pension Income (from an Annuity of Final Salary scheme, rather than non pension income).

 Dated 2011 – valid for 6 months. AisaProfessional is a trading style of Aisa Direct Ltd, authorised and regulated by the FSA as Independent Financial Advisers. 4 Fordbrook Business Centre, Pewsey, SN9 5NU

Notes …

Please note that the opinions expressed in this information must not be construed as statements of fact – you should carry out your own further research before coming to a decision and before taking any action.
The views in this letter represent the opinions of Aisa and should not be construed as a statement of fact. Further advice should be sought before actioning any investment or tax advice. The Financial Services Authority does not regulate opinions on the economic outlook, nor does it regulate some forms of tax advice or comment such as this.

* This newsletter has been prepared with all possible care to ensure its accuracy. It is based on our current understanding of legislation and HMRC practice. 
* Neither Aisa Direct Ltd nor any of its employees can accept responsibility for any errors or omissions. You should seek further professional advice prior to action.

This should not be deemed as individual advice and you should seek further information particular to your individual circumstances. For further information, contact AisaProfessional on 01672 569111.